SB168 - Revises provisions relating to cannabis. (BDR 56-553)

- 83rd Session (2025) Senate Bill No. 168–Senator Nguyen CHAPTER.......... AN ACT relating to cannabis; revising requirements for the packaging and labeling of cannabis and cannabis products; revising the definition of “usable cannabis”; authorizing an agent of the Cannabis Compliance Board to issue a hold order for cannabis or a cannabis product only under certain circumstances; requiring the Board to adopt regulations governing hold orders; authorizing a cannabis cultivation facility and a cannabis production facility to engage in certain activities; requiring the Board to develop and maintain certain checklists; requiring the Board to post certain information on its Internet website; revising requirements concerning the amount of usable cannabis and THC that may be contained in a single package of cannabis or cannabis products; imposing requirements concerning a single package of an infused pre-roll; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law provides for the licensure and regulation of persons and establishments in the cannabis industry in this State by the Cannabis Compliance Board. (Title 56 of NRS) Section 6 of this bill authorizes an agent of the Board to issue a hold order for cannabis or a cannabis product to prohibit a person from transferring or moving the cannabis or cannabis product without the approval of the Board or an agent of the Board only in accordance with regulations adopted by the Board. Section 6 requires the Board to adopt such regulations governing hold orders and sets forth certain requirements for the content of those regulations. Existing law defines “adult-use cannabis production facility” and “medical cannabis production facility” to mean a business that acquires, possesses, manufactures, delivers, transfers, supplies or sells adult-use cannabis products to adult-use cannabis retail stores or medical cannabis products to medical cannabis dispensaries, as applicable. (NRS 678A.060, 678A.205) Sections 8 and 9 of this bill revise those definitions to allow an adult-use cannabis production facility and medical cannabis production facility to engage in the acquisition, possession, packaging, supplying or selling of usable cannabis to adult-use cannabis retail stores or medical cannabis dispensaries, as applicable. Sections 5 and 17 of this bill revise the definition of “usable cannabis” set forth under existing law to exclude the seeds of a plant of the genus Cannabis and apply this definition throughout the provisions of existing law governing the medical and adult use of cannabis. Section 15 of this bill makes a conforming change to eliminate a reference to a provision that was repealed in section 17. Section 13.5 of this bill authorizes a cannabis cultivation facility and a cannabis production facility to acquire, possess, deliver, transfer, supply or sell the seeds of a plant of the genus Cannabis, branded merchandise and supplies related to cannabis to persons located within and outside this State, subject to certain requirements and restrictions. 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 10 of this bill prohibits those requirements from – 2 – - 83rd Session (2025) 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 adopted by the Board; 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 for the cannabis or cannabis product. Section 14 of this bill revises requirements concerning the labeling of cannabis products for the purpose of allowing information required to be included on a label to instead be included on packaging. Sections 3 and 4 of this bill define the terms “label” and “packaging” for the purposes of the provisions of existing law governing the medical and adult use of cannabis. Section 12 of this bill requires the Board to develop and maintain standardized checklists for any item for which the Board requires a licensee to obtain the approval of the Board before it is used by the licensee. Section 13 of this bill requires the Board to post on its Internet website a list of frequently asked questions pertaining to the operations of licensees. Existing law requires an adult-use cannabis product to be sold in a single package. (NRS 678D.420) Section 16 of this bill provides that cannabis, as well as adult-use cannabis products, sold to a consumer must be sold in a single package and revises requirements concerning the amount of usable cannabis and THC that a single package may contain. Section 16 requires a single package containing an infused pre-roll, as defined in section 2 of this bill, to contain a net weight of not more than 7 grams. 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 2 to 6, inclusive, of this act. Sec. 2. “Infused pre-roll” means an individual cannabis cigarette or joint that has been infused with concentrated cannabis. Sec. 3. “Label” means written or printed material affixed to or included with cannabis or a cannabis product to provide identification or other information. Sec. 4. “Packaging” means the immediate, consumer-facing wrapper or container in which cannabis or a cannabis product is packaged. Sec. 5. 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. – 3 – - 83rd Session (2025) Sec. 6. 1. An agent of the Board may issue a hold order for cannabis or a cannabis product to prohibit a person from transferring or moving the cannabis or cannabis product subject to the order without the approval of the Board or an agent of the Board only in accordance with the regulations adopted by the Board pursuant to this section. 2. The Board shall adopt regulations setting forth procedures and requirements for the issuance of a hold order for cannabis or a cannabis product. The regulations must: (a) Authorize an agent of the Board to issue a hold order only under circumstances in which cannabis or a cannabis product fails to satisfy a requirement set forth in this title or the regulations adopted pursuant thereto and constitutes a substantial hazard to the public health. (b) Require that at or before the time of issuance of a hold order notice be provided to the cannabis establishment whose cannabis or cannabis product is subject to the hold order stating the reasons for the hold order. (c) Require a hold order to be automatically terminated not later than 30 days after its issuance unless the Board, after notice and a hearing and for good cause shown, extends the duration of the hold order. (d) Set forth the circumstances under which a hold order may be terminated. Such circumstances must include, without limitation, for cannabis or a cannabis product subject to a hold order because of the failure of any test conducted by a cannabis independent testing laboratory, the passing of that test upon retesting of the cannabis or cannabis product. (e) Require the Board to publish guidelines concerning hold orders which are based on investigations conducted by the Board relating to such hold orders. 3. A person shall not transfer or move any cannabis or cannabis product for which a hold order has been issued pursuant to the regulations adopted pursuant to this section without the approval of the Board or an agent of the Board. Sec. 7. 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, inclusive, of this act have the meanings ascribed to them in those sections. Sec. 8. NRS 678A.060 is hereby amended to read as follows: 678A.060 “Adult-use cannabis production facility” means a business that: – 4 – - 83rd Session (2025) 1. Is licensed by the Board pursuant to NRS 678B.250; [and] 2. Acquires, possesses, manufactures, delivers, transfers, supplies or sells adult-use cannabis products to adult-use cannabis retail stores [.] ; and 3. Acquires, possesses, packages, supplies or sells usable cannabis to adult-use cannabis retail stores. Sec. 9. NRS 678A.205 is hereby amended to read as follows: 678A.205 “Medical cannabis production facility” means a business that: 1. Is licensed by the Board pursuant to NRS 678B.210; [and] 2. Acquires, possesses, manufactures, delivers, transfers, transports, supplies or sells medical cannabis products to medical cannabis dispensaries [.] ; and 3. Acquires, possesses, packages, supplies or sells usable cannabis to medical cannabis dispensaries. Sec. 10. NRS 678A.450 is hereby amended to read as follows: 678A.450 1. The Board may adopt regulations necessary or convenient to carry out the provisions of this title. Such regulations may include, without limitation: (a) Financial requirements for licensees. (b) Establishing such education, outreach, investigative and enforcement mechanisms as the Board deems necessary to ensure the compliance of a licensee or registrant with the provisions of this title. Such mechanisms must include, without limitation: (1) A system to educate, train and certify employees of the Board which: (I) Each employee must complete before he or she may engage in inspections, investigations or audits; and (II) At a minimum, includes training that is the same or substantially similar to any training that is required by the Board by regulation to be completed by a cannabis establishment agent before he or she may be employed by, volunteer at or provide labor to a cannabis establishment; (2) A system to educate and advise licensees and registrants on compliance with the provisions of this title which may serve as an alternative to disciplinary action; and (3) Establishing specific grounds for disciplinary action against a licensee or registrant who knowingly violates the law or engages in grossly negligent, unlawful or criminal conduct or an act or omission that poses an imminent threat to the health or safety of the public. – 5 – - 83rd Session (2025) (c) Requirements for licensees or registrants relating to the cultivation, processing, manufacture, transport, distribution, testing, study, advertising and sale of cannabis and cannabis products. (d) Policies and procedures to ensure that the cannabis industry in this State is economically competitive, inclusive of racial minorities, women and persons and communities that have been adversely affected by cannabis prohibition and accessible to persons of low-income seeking to start a business. (e) Policies and procedures relating to the disclosure of the identities of the shareholders and the annual report of a cannabis establishment that is a publicly traded company. (f) Reasonable restrictions on the signage, marketing, display and advertising of cannabis establishments. Such a restriction must not require a cannabis establishment to obtain the approval of the Board before using a logo, sign or advertisement. (g) Provisions governing the sales of products and commodities made from hemp, as defined in NRS 557.160, or containing cannabidiol by cannabis establishments. (h) Requirements relating to the packaging and labeling of cannabis and cannabis products. Such requirements must not require: (1) Any 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 adopted by the Board; or (2) A cannabis establishment to include any information on the label for cannabis or a cannabis product that is already included on the packaging for the cannabis or cannabis product. 2. The Board shall adopt regulations providing for the gathering and maintenance of comprehensive demographic information, including, without limitation, information regarding race, ethnicity, age and gender, concerning each: (a) Owner and manager of a cannabis establishment. (b) Holder of a cannabis establishment agent registration card. 3. The Board shall adopt regulations providing for the investigation of unlicensed cannabis activities and the imposition of penalties against persons who engage in such activities. Such regulations must, without limitation: (a) Establish penalties to be imposed for unlicensed cannabis activities, which may include, without limitation, the issuance of a cease and desist order or citation, the imposition of an administrative fine or civil penalty and other similar penalties. – 6 – - 83rd Session (2025) (b) Set forth the procedures by which the Board may impose a penalty against a person for engaging in unlicensed cannabis activities. (c) Set forth the circumstances under which the Board is required to refer matters concerning unlicensed cannabis activities to an appropriate state or local law enforcement agency. 4. The Board shall transmit the information gathered and maintained pursuant to subsection 2 to the Director of the Legislative Counsel Bureau for transmission to the Legislature on or before January 1 of each odd-numbered year. 5. The Board shall, by regulation, establish a pilot program for identifying opportunities for an emerging small cannabis business to participate in the cannabis industry. As used in this subsection, “emerging small cannabis business” means a cannabis-related business that: (a) Is in existence, operational and operated for a profit; (b) Maintains its principal place of business in this State; and (c) Satisfies requirements for the number of employees and annual gross revenue established by the Board by regulation. Sec. 11. Chapter 678B of NRS is hereby amended by adding thereto the provisions set forth as sections 12, 13 and 13.5 of this act. Sec. 12. The Board shall dev [Text truncated for display. Full text available on LegiScan.]