AB76 - Revises provisions relating to cannabis. (BDR 56-286)

- 83rd Session (2025) Assembly Bill No. 76–Committee on Judiciary CHAPTER.......... AN ACT relating to cannabis; revising provisions relating to the confidentiality of certain information relating to cannabis; revising provisions governing certain disciplinary proceedings; revising provisions relating to the operation of a cannabis establishment; revising certain requirements relating to the packaging and labeling of cannabis and cannabis products; authorizing the Cannabis Compliance Board to issue summonses and subpoenas and take certain other actions relating to unlicensed cannabis activities; revising provisions relating to the licensing of a cannabis establishment; revising provisions relating to cannabis independent testing laboratories; revising provisions relating to advertising engaged in and packaging used by a cannabis establishment; exempting certain persons from state prosecution for certain criminal offenses under certain circumstances; requiring the Cannabis Advisory Commission to conduct certain studies; making various other changes relating to the regulation of cannabis; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law provides for the licensure and regulation of persons and establishments involved in the cannabis industry in this State by the Cannabis Compliance Board. (Title 56 of NRS) Existing law sets forth procedures by which the Board may take disciplinary action against a licensee or registrant. (NRS 678A.500-678A.600) Under existing law, the Executive Director of the Board is authorized to transmit the details of any suspected violation of the provisions of existing law and regulations that govern the medical and adult use of cannabis to the Attorney General for an investigation. (NRS 678A.500) After the investigation, existing law requires the Board to determine whether to proceed with disciplinary action against a licensee or registrant. (NRS 678A.510) If the Board proceeds with disciplinary action, existing law: (1) requires the Board or the Executive Director to serve a complaint upon the respondent; and (2) sets forth procedures for the conduct of a disciplinary hearing before the Board. (NRS 678A.520-678A.590) If the Board determines that a licensee or registrant has violated a provision of existing law or regulations governing the medical and adult use of cannabis, existing law authorizes the Board to impose certain penalties against the licensee or registrant. (NRS 678A.600) Sections 6 and 13-24 of this bill revise the procedures by which disciplinary action may be taken against a licensee or registrant. Section 13 specifies that the Executive Director is authorized to transmit the details of a suspected violation to the Attorney General for further investigation. Section 24 makes a conforming change to reflect the fact that an investigation of a violation is commenced by the Executive Director, rather than the Board. Section 14 revises the actions the Board must take with respect to each complaint resulting in an investigation by the Attorney General. Section 15 revises the required content of a complaint served by – 2 – - 83rd Session (2025) the Board or the Executive Director and the time in which the respondent may answer the complaint. Upon receipt of an answer demanding a hearing or the expiration of the time to answer the complaint, section 15 requires the Board to assign the matter to a hearing officer. Sections 15-23 require a disciplinary hearing to be heard before a hearing officer, rather than the Board, and revise procedures for the conduct of such a hearing. Section 6: (1) provides that the decision and order of a hearing officer is final unless a party aggrieved by the decision requests that the Board review the decision and order or the Board initiates such a review on its own motion; and (2) sets forth procedures for the conduct of a review by the Board. Section 23 provides that any person aggrieved by a final decision or order of the Board after a review conducted pursuant to section 6 is entitled to judicial review of the decision or order. Section 5 of this bill requires the Board to appoint one or more hearing officers to conduct disciplinary hearings and render decisions. Section 26 of this bill authorizes the Board, the Executive Director or a designee of the Executive Director to issue a letter of warning, a letter of concern or a nonpunitive admonishment under certain circumstances. Existing law requires the Board to adopt regulations providing for the investigation of unlicensed cannabis activities and the imposition of penalties against persons who engage in such activities. (NRS 678A.450) Section 11 of this bill authorizes the Board to issue summonses and subpoenas and to take certain other actions in connection with such an investigation. Sections 4, 12 and 54 of this bill revise provisions relating to the confidentiality of certain information obtained by the Board. Existing law authorizes the Governor or his or her designee to enter into one or more agreements with tribal governments concerning cannabis. (NRS 223.250) Sections 52 and 53 of this bill provide that certain information received by a governmental entity from a tribal government or a facility engaged in cannabis activities operating on tribal land pursuant to the terms of such an agreement remains the property of the tribal government, does not constitute a public record and must be kept confidential by the governmental entity. Sections 2, 7, 33, 34, 37 and 38 of this bill establish a standardized definition of the term “local governmental jurisdiction” for the purposes of provisions governing the medical and adult use of cannabis. Existing law authorizes the Board to adopt regulations setting forth requirements relating to the packaging and labeling of cannabis and cannabis products. (NRS 678A.450) Section 11 prohibits those requirements from requiring: (1) a package of cannabis or cannabis products which is sold at wholesale to contain any label or tag other than a label or tag necessary for the functionality of any computer software used for the seed-to-sale tracking of cannabis; and (2) a cannabis establishment to include any information on the label for any cannabis or a cannabis product that is already included on the packaging of the cannabis or cannabis product. Sections 1.5 and 2.5 of this bill define the terms “label” and “packaging” for the purposes of provisions of existing law governing the medical and adult use of cannabis. Existing law prohibits the production, distribution and sale of any synthetic cannabinoid. (NRS 453.572, 557.255, 678B.525) Section 10 of this bill revises the definition of “synthetic cannabinoid” to: (1) specify that any cannabinoid that is either produced artificially or not obtained directly without the use of a chemical reagent from a plant of the genus Cannabis constitutes a synthetic cannabinoid; and (2) exclude THC produced using certain processes. Existing law requires a cannabis establishment to use an inventory control system. (NRS 678B.210, 678B.250, 678C.430) Existing law sets forth certain – 3 – - 83rd Session (2025) requirements for the operation of such a system by a medical cannabis establishment. (NRS 678C.430) Sections 27, 31, 32, 35 and 45 of this bill revise those requirements and additionally apply the requirements to the operation of such a system by an adult-use cannabis establishment. Sections 45 and 49 of this bill revise requirements for a dual licensee concerning the reporting of inventory. Existing law sets forth procedures by which a health authority, upon finding a condition in the operation of a food establishment constituting a substantial hazard to the public health, may issue an order to the holder of the permit to operate the food establishment that may require the immediate suspension of the permit and discontinuance of all food operations. (NRS 446.880) Section 30 of this bill sets forth similar procedures by which an agent of the Board may issue such an order to the holder of a cannabis establishment license if the agent finds a condition in the operation of the cannabis establishment which constitutes a substantial hazard to the public health. Section 30 sets forth certain conditions under which such an order may not order the immediate suspension of the license and the immediate discontinuance of the operations of the cannabis establishment. Section 29 of this bill defines “substantial hazard to the public health” to include certain specified conditions. Section 29 additionally requires the Board to adopt certain regulations concerning substantial hazards to the public health which may exist at a cannabis establishment. Existing law requires an applicant for a medical cannabis establishment license or adult-use cannabis establishment license to submit to the Board the physical address of the proposed cannabis establishment, which, among other requirements, must not be within a certain distance of a public or private school or community facility. (NRS 678B.210, 678B.250) Sections 32 and 35 establish definitions of “public school” and “private school” and revise the definition of “community facility.” Section 36 of this bill revises certain requirements for cannabis independent testing laboratories. Existing law deems the issuance of a license by the Board to be conditional in certain local governmental jurisdictions until the cannabis establishment is in compliance with applicable local governmental ordinances or rules and the local government has issued a business license for the operation of the establishment. (NRS 678B.320) Section 37 additionally deems the issuance of such a license to be conditional until the cannabis establishment satisfies an inspection conducted by the Board. Section 39 of this bill revises the procedures that the operating documents of a cannabis establishment are required to include to additionally include certain procedures relating to the training of cannabis establishment agents and other procedures established by the Board by regulation. (NRS 678B.510) Section 40 of this bill revises certain restrictions on advertising engaged in and packaging used by a cannabis establishment. Existing law prohibits a person from selling, offering to sell, appearing to sell or advertising the sale of cannabis or cannabis products unless the person holds an adult-use cannabis establishment license or medical cannabis establishment license. (NRS 678B.530) Section 41 of this bill prohibits those actions only if the person does not have the appropriate type of license and additionally prohibits a person from advertising as a cannabis sales facility or cannabis consumption lounge without the appropriate type of license. Existing law exempts an employee of the State Department of Agriculture from state prosecution for certain offenses relating to cannabis under certain circumstances. (NRS 678B.600) Section 42 of this bill expands that exemption to – 4 – - 83rd Session (2025) also include an employee of the Board and an attorney who represents the Department or the Board. Existing law provides an exemption from state prosecution for the possession, delivery and production of cannabis for: (1) a person who holds a valid registry identification card or letter of approval; and (2) a person who is 21 years of age or older. However, under existing law, that exemption is subject to certain limitations. For example, with respect to usable cannabis, the exemption applies only to the extent that a person does not, at any one time, possess, deliver or produce more than 2.5 ounces of usable cannabis. (NRS 678C.200, 678D.200) Existing law also prohibits a cannabis sales facility from selling to a person, in any one transaction, more than 2.5 ounces of usable cannabis. (NRS 678B.550) Sections 3, 7 and 56 of this bill revise the definition of “usable cannabis” to exclude the seeds of a plant of the genus plant Cannabis and apply this definition throughout the provisions of existing law governing the medical and adult use of cannabis. Section 47 of this bill makes a conforming change to eliminate a reference to a provision that has been repealed in section 56. Existing law requires a medical cannabis establishment to maintain an electronic verification system. (NRS 678B.210, 678C.420) Section 9 of this bill changes the name of such a system to an electronic verification and authentication system. Section 44 of this bill revises requirements concerning the operation of such a system. Existing law requires an adult-use cannabis product to be sold in a single package. (NRS 678D.420) Section 48 of this bill revises requirements concerning the amount of usable cannabis, concentrated cannabis or THC that a single package may contain. Existing law, with certain exceptions, prohibits smoking in any form within indoor places of employment. (NRS 202.2483) Section 51 of this bill clarifies that the smoking of cannabis in a cannabis consumption lounge in accordance with the provisions of existing law governing the medical and adult-use of cannabis is not prohibited. Section 54.3 of this bill requires the Cannabis Advisory Commission to create a subcommittee to conduct a study concerning certain matters relating to sales of consumable hemp products in this State. Section 54.7 of this bill additionally requires the Commission to create a subcommittee to conduct a study concerning the manner in which cannabis and cannabis products are taxed in this State. EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 678A of NRS is hereby amended by adding thereto the provisions set forth as sections 1.5 to 6, inclusive, of this act. Sec. 1.5. “Label” means written or printed material affixed to or included with cannabis or a cannabis product to provide identification or other information. Sec. 2. “Local governmental jurisdiction” means a city or unincorporated area within a county. – 5 – - 83rd Session (2025) Sec. 2.5. “Packaging” means the immediate, consumer- facing wrapper or container in which cannabis or a cannabis product is packaged. Sec. 3. 1. “Usable cannabis” means the dried leaves and flowers of a plant of the genus Cannabis, and any mixture or preparation thereof, that are appropriate for the medical use of cannabis or the adult use of cannabis. 2. The term does not include the seeds, stalks and roots of the plant. Sec. 4. The Board or an agent of the Board may refus [Text truncated for display. Full text available on LegiScan.]