AB149 - Revises provisions relating to cannabis. (BDR 56-51)

EXEMPT (Reprinted with amendments adopted on April 17, 2025) FIRST REPRINT A.B. 149 - *AB149_R1* ASSEMBLY BILL NO. 149–ASSEMBLYMEMBER CARTER PREFILED JANUARY 30, 2025 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to cannabis. (BDR 56-51) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Contains Appropriation not included in Executive Budget. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to cannabis; requiring the Cannabis Compliance Board to adopt regulations governing certain agreements to share information and data maintained by the Board; making appropriations; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law deems certain information and data maintained by the Cannabis 1 Compliance Board to be confidential and sets forth the persons to whom and the 2 circumstances under which the Board may disclose such information and data. 3 (NRS 678A.470) Section 1 of this bill requires the Board to adopt regulations 4 establishing procedures pursuant to which the Board may enter into an agreement 5 with a research institution to share information and data maintained by the Board 6 for the purposes of research relating to cannabis and the cannabis industry. Section 7 1 defines the term “research institution” to mean a university, college or other 8 organization which has as one of its principal purposes the conducting of medical, 9 scientific or academic research. Section 2 of this bill authorizes the Board to 10 disclose confidential information and data maintained by the Board to a research 11 institution in accordance with the regulations adopted by the Board pursuant to 12 section 1. 13 Sections 3 and 4 of this bill appropriate money to the Cannabis Policy Institute 14 at the University of Nevada, Las Vegas, for personnel, operating and travel 15 expenses and for direct costs relating to research conducted by the Institute. 16 – 2 – - *AB149_R1* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 678A.450 is hereby amended to read as 1 follows: 2 678A.450 1. The Board may adopt regulations necessary or 3 convenient to carry out the provisions of this title. Such regulations 4 may include, without limitation: 5 (a) Financial requirements for licensees. 6 (b) Establishing such education, outreach, investigative and 7 enforcement mechanisms as the Board deems necessary to ensure 8 the compliance of a licensee or registrant with the provisions of this 9 title. Such mechanisms must include, without limitation: 10 (1) A system to educate, train and certify employees of the 11 Board which: 12 (I) Each employee must complete before he or she may 13 engage in inspections, investigations or audits; and 14 (II) At a minimum, includes training that is the same or 15 substantially similar to any training that is required by the Board by 16 regulation to be completed by a cannabis establishment agent before 17 he or she may be employed by, volunteer at or provide labor to a 18 cannabis establishment; 19 (2) A system to educate and advise licensees and registrants 20 on compliance with the provisions of this title which may serve as 21 an alternative to disciplinary action; and 22 (3) Establishing specific grounds for disciplinary action 23 against a licensee or registrant who knowingly violates the law or 24 engages in grossly negligent, unlawful or criminal conduct or an act 25 or omission that poses an imminent threat to the health or safety of 26 the public. 27 (c) Requirements for licensees or registrants relating to the 28 cultivation, processing, manufacture, transport, distribution, testing, 29 study, advertising and sale of cannabis and cannabis products. 30 (d) Policies and procedures to ensure that the cannabis industry 31 in this State is economically competitive, inclusive of racial 32 minorities, women and persons and communities that have been 33 adversely affected by cannabis prohibition and accessible to persons 34 of low-income seeking to start a business. 35 (e) Policies and procedures relating to the disclosure of the 36 identities of the shareholders and the annual report of a cannabis 37 establishment that is a publicly traded company. 38 (f) Reasonable restrictions on the signage, marketing, display 39 and advertising of cannabis establishments. Such a restriction must 40 not require a cannabis establishment to obtain the approval of the 41 Board before using a logo, sign or advertisement. 42 – 3 – - *AB149_R1* (g) Provisions governing the sales of products and commodities 1 made from hemp, as defined in NRS 557.160, or containing 2 cannabidiol by cannabis establishments. 3 (h) Requirements relating to the packaging and labeling of 4 cannabis and cannabis products. 5 2. The Board shall adopt regulations providing for the 6 gathering and maintenance of comprehensive demographic 7 information, including, without limitation, information regarding 8 race, ethnicity, age and gender, concerning each: 9 (a) Owner and manager of a cannabis establishment. 10 (b) Holder of a cannabis establishment agent registration card. 11 3. The Board shall adopt regulations providing for the 12 investigation of unlicensed cannabis activities and the imposition of 13 penalties against persons who engage in such activities. Such 14 regulations must, without limitation: 15 (a) Establish penalties to be imposed for unlicensed cannabis 16 activities, which may include, without limitation, the issuance of a 17 cease and desist order or citation, the imposition of an 18 administrative fine or civil penalty and other similar penalties. 19 (b) Set forth the procedures by which the Board may impose a 20 penalty against a person for engaging in unlicensed cannabis 21 activities. 22 (c) Set forth the circumstances under which the Board is 23 required to refer matters concerning unlicensed cannabis activities 24 to an appropriate state or local law enforcement agency. 25 4. The Board shall transmit the information gathered and 26 maintained pursuant to subsection 2 to the Director of the 27 Legislative Counsel Bureau for transmission to the Legislature on or 28 before January 1 of each odd-numbered year. 29 5. The Board shall, by regulation, establish a pilot program for 30 identifying opportunities for an emerging small cannabis business to 31 participate in the cannabis industry. As used in this subsection, 32 “emerging small cannabis business” means a cannabis-related 33 business that: 34 (a) Is in existence, operational and operated for a profit; 35 (b) Maintains its principal place of business in this State; and 36 (c) Satisfies requirements for the number of employees and 37 annual gross revenue established by the Board by regulation. 38 6. The Board shall adopt regulations establishing procedures 39 pursuant to which the Board may enter into an agreement with a 40 research institution to share information and data maintained by 41 the Board, including, without limitation, information and data 42 classified as confidential pursuant to NRS 678A.470, for the 43 purposes of research relating to cannabis and the cannabis 44 industry. As used in this subsection, “research institution” means 45 – 4 – - *AB149_R1* a university, college or other organization which has as one of its 1 principal purposes the conducting of medical, scientific or 2 academic research. 3 Sec. 2. NRS 678A.470 is hereby amended to read as follows: 4 678A.470 1. The Board shall cause to be made and kept a 5 record of all proceedings at regular and special meetings of the 6 Board. These records are open to public inspection. 7 2. Any and all information and data prepared or obtained by 8 the Board or by an agent or employee of the Board relating to a 9 holder of or an applicant for a medical cannabis establishment 10 license pursuant to NRS 678B.210, other than the name of a licensee 11 and each owner, officer and board member of the licensee and 12 information relating to the scoring and ranking of applications and 13 the imposition of disciplinary action, are confidential and may be 14 revealed in whole or in part only in the course of the necessary 15 administration of this title or upon the lawful order of a court of 16 competent jurisdiction. The Board may reveal such information and 17 data to an authorized agent of any agency of the United States 18 Government, any state , [or] any political subdivision of a state or 19 the government of any foreign country [.] or a research institution 20 pursuant to an agreement entered into in accordance with the 21 regulations adopted by the Board pursuant to subsection 6 of NRS 22 678A.450. Notwithstanding any other provision of state law, such 23 information and data may not be otherwise revealed without specific 24 authorization by the Board pursuant to the regulations of the Board. 25 3. Except as otherwise provided in this subsection, any 26 information and data included in an application for an adult-use 27 cannabis establishment license or a registration card is confidential 28 and may be revealed in whole or in part only in the course of the 29 necessary administration of this title or upon the lawful order of a 30 court of competent jurisdiction. The name of the holder of an adult- 31 use cannabis establishment license and each owner, officer and 32 board member of the licensee and information relating to the scoring 33 and ranking of applications and the imposition of disciplinary action 34 are not confidential. The Board may reveal such information and 35 data to an authorized agent of any agency of the United States 36 Government, any state or any political subdivision of a state , [or] 37 the government of any foreign country [.] or a research institution 38 pursuant to an agreement entered into in accordance with the 39 regulations adopted by the Board pursuant to subsection 6 of NRS 40 678A.450. Notwithstanding any other provision of state law, such 41 information and data may not be otherwise revealed without specific 42 authorization by the Board pursuant to the regulations of the Board. 43 4. All files, records, reports and other information and data 44 pertaining to matters related to cannabis in the possession of the 45 – 5 – - *AB149_R1* Nevada Tax Commission or the Department of Taxation must be 1 made available to the Board as is necessary to the administration of 2 this title. 3 5. As used in this section, “information and data” means all 4 information and data in any form, including, without limitation, any 5 oral, written, audio, visual, digital or electronic form, and the term 6 includes, without limitation, any account, book, correspondence, 7 file, message, paper, record, report or other type of document, 8 including, without limitation, any document containing self- 9 evaluative assessments, self-critical analysis or self-appraisals of an 10 applicant’s or licensee’s compliance with statutory or regulatory 11 requirements. 12 Sec. 3. 1. There is hereby appropriated from the State 13 General Fund to the Cannabis Policy Institute at the University of 14 Nevada, Las Vegas, for personnel, operating and travel expenses the 15 following sums: 16 For the Fiscal Year 2025-2026 .................................. $657,241 17 For the Fiscal Year 2026-2027 .................................. $657,241 18 2. Any balance of the sums appropriated by subsection 1 19 remaining at the end of the respective fiscal years must not be 20 committed for expenditure after June 30 of the respective fiscal 21 years by the entity to which the appropriation is made or any entity 22 to which money from the appropriation is granted or otherwise 23 transferred in any manner, and any portion of the appropriated 24 money remaining must not be spent for any purpose after 25 September 18, 2026, and September 17, 2027, respectively, by 26 either the entity to which the money was appropriated or the entity 27 to which the money was subsequently granted or transferred, and 28 must be reverted to the State General Fund on or before 29 September 18, 2026, and September 17, 2027, respectively. 30 Sec. 4. 1. There is hereby appropriated from the State 31 General Fund to the Cannabis Policy Institute at the University of 32 Nevada, Las Vegas, for direct costs relating to research conducted 33 by the Institute, including, without limitation, costs for the salaries 34 of researchers, stipends and travel relating to such research, but not 35 including indirect costs or overhead expenses, the following sums: 36 For the Fiscal Year 2025-2026 ............................... $1,000,000 37 For the Fiscal Year 2026-2027 ............................... $1,000,000 38 2. The sums appropriated by subsection 1 are available for 39 either fiscal year. Any remaining balance of those sums must not be 40 committed for expenditure after June 30, 2027, by the entity to 41 which the appropriation is made or any entity to which money from 42 the appropriation is granted or otherwise transferred in any manner, 43 and any portion of the appropriated money remaining must not be 44 spent for any purpose after September 17, 2027, by either the entity 45 – 6 – - *AB149_R1* to which the money was appropriated or the entity to which the 1 money was subsequently granted or transferred, and must be 2 reverted to the State General Fund on or before September 17, 2027. 3 Sec. 5. This act becomes effective on July 1, 2025. 4 H