AB308 - Revises provisions relating to cannabis establishment agents. (BDR 56-822)

REQUIRES TWO-THIRDS MAJORITY VOTE (§ 5) A.B. 308 - *AB308* ASSEMBLY BILL NO. 308–ASSEMBLYMEMBER BACKUS FEBRUARY 27, 2025 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to cannabis establishment agents. (BDR 56-822) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to cannabis; authorizing the Cannabis Compliance Board, in accordance with policies and procedures established by the Board, to waive any requirement to obtain a registration card for a person who holds an ownership interest of 5 percent or more in a cannabis establishment; clarifying the procedures by which an owner, officer or board member of a cannabis establishment may obtain a registration card; revising provisions governing the renewal of registration cards; revising requirements setting forth the cannabis establishments at which the holder of a registration card may serve as an owner, officer or board member or volunteer or work; increasing the fee for the issuance or renewal of certain registration cards; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law provides for the issuance of cannabis establishment agent 1 registration cards, cannabis establishment agent registration cards for cannabis 2 executives and cannabis establishment agent registration cards for cannabis 3 receivers by the Cannabis Compliance Board. (NRS 678B.340, 678B.350, 4 678B.355) Existing law defines “cannabis establishment agent” to mean an owner, 5 officer, board member, employee or volunteer of a cannabis establishment, an 6 independent contractor who provides labor relating to the cultivation or processing 7 of cannabis or the production of usable cannabis or cannabis products for a 8 cannabis establishment or an employee of such an independent contractor. (NRS 9 678A.100) Existing law defines “cannabis establishment agent registration card” to 10 mean a registration card that is issued by the Board to authorize a person: (1) to be 11 an owner, officer or board member of a cannabis establishment; or (2) to volunteer 12 – 2 – - *AB308* or work at or contract to provide labor for a cannabis establishment. (NRS 13 678A.105) Section 2 of this bill clarifies the procedures by which a cannabis 14 establishment agent registration card may be issued to an owner, officer or board 15 member of a cannabis establishment. 16 Existing law requires a person who holds an ownership interest in a cannabis 17 establishment of 5 percent or more to obtain a cannabis establishment agent 18 registration card for a cannabis executive. (NRS 678B.350) Section 1 of this bill 19 authorizes the Board, in accordance with policies and procedures established by the 20 Board by regulation, to waive any requirement to obtain a registration card for any 21 person who holds an ownership interest of 5 percent or more in a cannabis 22 establishment. 23 Existing law provides that a cannabis establishment agent registration card, 24 cannabis establishment agent registration card for a cannabis executive and 25 cannabis establishment agent registration card for a cannabis receiver expires 2 26 years after issuance and may be renewed upon the submission to the Board of 27 certain information and the payment of a renewal fee. (NRS 678B.340, 678B.350, 28 678B.355) Sections 2-4 of this bill revise the date on which such a registration card 29 expires. Under sections 2-4, the initial registration card expires 2 years after 30 issuance and any renewed registration card expires 2 years after the expiration date 31 of the most recent registration card issued to or renewed by the person. Sections 2- 32 4 additionally require, in order to renew a registration card, the required 33 information and payment to be submitted on or before the date on which the 34 registration card expires. 35 Sections 2-4 also eliminate provisions requiring a person to whom a 36 registration card is issued or for whom a registration card is renewed to submit to 37 the Board an affidavit on the first anniversary of the issuance or renewal attesting to 38 certain matters. 39 Existing law requires the Board to adopt regulations establishing different 40 categories of cannabis establishment agent registration cards. (NRS 678B.650) 41 Under existing law, a cannabis establishment agent registration card authorizes the 42 person to whom it is issued to volunteer or work at any cannabis establishment in 43 this State for which the category of the registration card authorizes the person to 44 volunteer or work. (NRS 678B.340) Section 6 of this bill eliminates the 45 requirement that the Board establish categories of cannabis establishment agent 46 registration cards. Section 2 instead establishes two categories of cannabis 47 establishment registration cards to be issued to a person who wishes to serve as an 48 owner, officer or board member of or volunteer or work at a cannabis 49 establishment. Under section 2, a cannabis establishment agent registration card 50 issued to a person who wishes to serve as an owner, officer or board member of or 51 volunteer or work at: (1) a cannabis establishment other than a cannabis 52 independent testing laboratory authorizes the person to serve as an owner, officer or 53 board member of or volunteer or work at any cannabis establishment in this State 54 other than a cannabis independent testing laboratory; and (2) a cannabis 55 independent testing laboratory authorizes the person to serve as an owner, officer or 56 board member of or volunteer or work at any cannabis independent testing 57 laboratory in this State. 58 Existing law establishes a fee of $150 for the initial issuance and renewal of a 59 cannabis establishment agent registration card. (NRS 678B.390) Section 5 of this 60 bill increases that fee to $400 for the initial issuance and renewal of: (1) a cannabis 61 establishment agent registration card to an owner, officer or board member of a 62 cannabis establishment; (2) a cannabis establishment agent registration card for 63 a cannabis executive; and (3) a cannabis establishment agent registration card for a 64 cannabis receiver. 65 – 3 – - *AB308* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 678B of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 The Board may, in accordance with policies and procedures 3 established by the Board by regulation, waive any requirement to 4 obtain a registration card pursuant to this title for any person who 5 holds an ownership interest of 5 percent or more in a cannabis 6 establishment. 7 Sec. 2. NRS 678B.340 is hereby amended to read as follows: 8 678B.340 1. [A] Except as otherwise provided in this 9 section and section 1 of this act, a person shall not serve as an 10 owner, officer or board member of, volunteer or work at, contract 11 to provide labor to or be employed by an independent contractor to 12 provide labor to a cannabis establishment as a cannabis 13 establishment agent unless the person is registered with the Board 14 pursuant to this section. 15 2. A person who wishes to serve as an owner, officer or board 16 member of or volunteer or work at a cannabis establishment shall 17 submit to the Board an application on a form prescribed by the 18 Board. The application must be accompanied by: 19 (a) The name, address and date of birth of the prospective 20 cannabis establishment agent; 21 (b) A statement signed by the prospective cannabis 22 establishment agent pledging not to dispense or otherwise divert 23 cannabis to any person who is not authorized to possess cannabis in 24 accordance with the provisions of this title; 25 (c) A statement signed by the prospective cannabis 26 establishment agent asserting that he or she has not previously had a 27 cannabis establishment agent registration card revoked; 28 (d) The application fee, as set forth in NRS 678B.390; and 29 (e) Such other information as the Board may require by 30 regulation. 31 3. A person who wishes to contract to provide labor to or be 32 employed by an independent contractor to provide labor to a 33 cannabis establishment shall submit to the Board an application on a 34 form prescribed by the Board for the registration of the independent 35 contractor and each employee of the independent contractor who 36 will provide labor as a cannabis establishment agent. The 37 application must be accompanied by: 38 (a) The name, address and, if the prospective cannabis 39 establishment agent has a state business license, the business 40 identification number assigned by the Secretary of State upon 41 compliance with the provisions of chapter 76 of NRS; 42 – 4 – - *AB308* (b) The name, address and date of birth of each employee of the 1 prospective cannabis establishment agent who will provide labor as 2 a cannabis establishment agent; 3 (c) A statement signed by the prospective cannabis 4 establishment agent pledging not to dispense or otherwise divert 5 cannabis to, or allow any of its employees to dispense or otherwise 6 divert cannabis to, any person who is not authorized to possess 7 cannabis in accordance with the provisions of this title; 8 (d) A statement signed by the prospective cannabis 9 establishment agent asserting that it has not previously had a 10 cannabis establishment agent registration card revoked and that 11 none of its employees who will provide labor as a cannabis 12 establishment agent have previously had a cannabis establishment 13 agent registration card revoked; 14 (e) The application fee, as set forth in NRS 678B.390; and 15 (f) Such other information as the Board may require by 16 regulation. 17 4. The Board may conduct any investigation of a prospective 18 cannabis establishment agent and, for an independent contractor, 19 each employee of the prospective cannabis establishment agent who 20 will provide labor as a cannabis establishment agent, that the Board 21 deems appropriate. In connection with such an investigation, the 22 Board may: 23 (a) Conduct or accept any background check the Board 24 determines to be reliable and expedient to determine the criminal 25 history of the prospective cannabis establishment agent or the 26 employee; 27 (b) Require a prospective cannabis establishment agent, if a 28 natural person, and each employee of a prospective cannabis 29 establishment agent who will provide labor as a cannabis 30 establishment agent to submit to the Board a complete set of 31 fingerprints and written permission authorizing the Board to forward 32 the fingerprints to the Central Repository for Nevada Records of 33 Criminal History for submission to the Federal Bureau of 34 Investigation for its report; and 35 (c) If the Board imposes the requirement described in paragraph 36 (b), submit the fingerprints of the prospective cannabis 37 establishment agent and each employee of the prospective 38 cannabis establishment agent who will provide labor as a cannabis 39 establishment agent to the Central Repository for Nevada Records 40 of Criminal History for submission to the Federal Bureau of 41 Investigation for its report. 42 5. A cannabis establishment shall notify the Board within 10 43 business days after a cannabis establishment agent ceases to be 44 – 5 – - *AB308* employed by, volunteer at or provide labor as a cannabis 1 establishment agent to the cannabis establishment. 2 6. Except as otherwise provided in NRS 678B.633, a person 3 who: 4 (a) Has been convicted of an excluded felony offense; 5 (b) Is less than 21 years of age; or 6 (c) Is not qualified, in the determination of the Board pursuant to 7 NRS 678B.200, 8  shall not serve as a cannabis establishment agent. 9 7. The provisions of this section do not require a person who is 10 an owner, officer or board member of a cannabis establishment to 11 resubmit information already furnished to the Board at the time the 12 establishment was licensed with the Board. 13 8. If an applicant for registration as a cannabis establishment 14 agent satisfies the requirements of this section, is found to be 15 qualified by the Board pursuant to NRS 678B.200 and is not 16 disqualified from serving as such an agent pursuant to this section or 17 any other applicable law, the Board shall issue to the person and, for 18 an independent contractor, to each person identified in the 19 independent contractor’s application for registration as an employee 20 who will provide labor as a cannabis establishment agent, a cannabis 21 establishment agent registration card. If the Board does not act upon 22 an application for a cannabis establishment agent registration card 23 within 45 days after the date on which the application is received, 24 the application shall be deemed conditionally approved until such 25 time as the Board acts upon the application. [A] An initial cannabis 26 establishment agent registration card expires 2 years after the date of 27 issuance and may be renewed . [upon:] Any renewed cannabis 28 establishment agent registration card expires 2 years after the 29 expiration date of the most recent cannabis establishment agent 30 registration card issued to or renewed by the person pursuant to 31 this section. 32 9. To renew a cannabis establishment agent registration card, 33 a person must, on or before the date on which the registration 34 card expires: 35 (a) [Resubmission of] Resubmit the information set forth in this 36 section; and 37 (b) [Payment of] Pay the renewal fee set forth in 38 NRS 678B.390. 39 [9. A person to whom a cannabis establishment agent 40 registration card is issued or for whom such a registration card is 41 renewed shall submit to the Board on the date of the first 42 anniversary of the issuance or renewal an affidavit attesting that in 43 the preceding year there has been no change in the information 44 – 6 – - *AB308* previously provided to the Board which would subject the person to 1 disciplinary action by the Board.] 2 10. A cannabis establishment agent registration card issued 3 pursuant to this section to an independent contractor or an employee 4 of an independent contractor authorizes the independent cont [Text truncated for display. Full text available on LegiScan.]