RE:NV creates marijuana board; bans social use licensing 2 yrs.Revises provisions relating to cannabis. (BDR 60-1217) Title: AN ACT relating to cannabis; creating the Cannabis Advisory Commission; prescribing the membership and duties of the Commission; creating the Cannabis Compliance Board; prescribing the membership and duties of the Board; transferring the authority to license and regulate persons and establishments engaged in certain activities relating to cannabis from the Department of Taxation to the Board; repealing, reenacting, revising and reorganizing certain provisions related to cannabis; establishing requirements relating to the delivery of cannabis and cannabis products to a consumer; revising provisions relating to inventory control systems; prohibiting a local government from licensing a business that allows consumption of cannabis on its premises; requiring the Department of Health and Human Services to adopt regulations relating to certain commodities or products made using industrial hemp and certain similar products; providing penalties; and providing other matters properly relating thereto. Introduction Date: Tuesday, May 14, 2019 Fiscal Notes: Effect on Local Government: No. Effect on the State: Executive Budget. Digest: show hide Existing law: (1) exempts a person who holds a valid registry identification card or letter of approval from state prosecution for possession, delivery and production of marijuana; and (2) generally decriminalizes the purchase, possession and use of marijuana and marijuana paraphernalia for persons who are 21 years of age or older. Existing law also generally exempts a person who holds a valid medical marijuana establishment registration certification or license to operate a marijuana establishment from state prosecution for possession, delivery and production of marijuana and provides for the licensing and regulation of such establishments by the Department of Taxation. (Chapters 453A and 453D of NRS) Section 245 of this bill repeals the provisions of existing law governing the medical use of marijuana and the use of marijuana by persons 21 years of age or older in this State. Sections 2-187 of this bill generally: (1) reenact, revise and reorganize these provisions into a new title of NRS; and (2) transfer the authority to license and regulate persons and establishments involved in the marijuana industry in this State to the Cannabis Compliance Board created by section 54 of this bill. Under the provisions of this bill, the term marijuana, as used under the provisions of existing law governing the marijuana industry in this State, is replaced with the term cannabis. Section 16 of this bill designates the use of cannabis by a person 21 years of age or older as the adult use of cannabis. Section 8 of this bill designates certain establishments that engage in certain business related to the adult use of cannabis as adult-use cannabis establishments. Similarly, section 46 of this bill designates the use of cannabis by a person to mitigate the symptoms or effects of a chronic or debilitating medical condition, as defined in section 128 of this bill, as the medical use of cannabis. Section 39 of this bill designates certain establishments that engage in certain business related to the medical use of cannabis as medical cannabis establishments. Section 52 of this bill creates the Cannabis Advisory Commission, which includes ex officio members and members appointed by the Governor, for the purposes of studying issues and making recommendations to the Cannabis Compliance Board related to the regulation of cannabis in this State. Section 54 of this bill creates the Cannabis Compliance Board, consisting of five members appointed by the Governor and generally modeled after the Nevada Gaming Control Board. Section 58 of this bill sets the annual salaries for each member of the Board. Sections 59-82 of this bill set forth the powers and duties of the Board, which generally consist of the regulation, licensing and registration of establishments and persons engaged in the production and sale of cannabis and cannabis products in this State. Section 65 of this bill sets forth procedures by which the Board is authorized to adopt regulations and provides a procedure for the Legislative Commission to review and object to such regulations. Section 66 of this bill provides that certain records, information and data relating to certain licensees or registrants are confidential. Section 67 of this bill: (1) requires the Board to perform certain audits of the accounts, programs, funds, activities and functions of licensees; and (2) authorizes the Board to require the Department of Taxation to perform a tax audit of licensees. Sections 68-82 of this bill set forth the procedures by which the Board may take disciplinary action against a licensee or registrant. Sections 84-123 of this bill reenact and revise provisions of existing law governing the licensure of marijuana establishments, medical marijuana establishments and medical marijuana establishment agents, and reorganize these provisions into a new chapter of NRS governing the licensure of cannabis establishments and registration of cannabis establishment agents. Section 104 of this bill requires each person who holds an ownership interest of more than 5 percent in a cannabis establishment to obtain a cannabis establishment agent registration card for a cannabis executive. Section 106 of this bill authorizes the Board to impose certain requirements and standards on a licensee that is a business entity under certain circumstances. Section 116 of this bill prohibits a person who does not hold a license issued pursuant to the provisions of this bill from: (1) engaging in certain advertising relating to cannabis; (2) selling, offering to sell or appearing to sell cannabis or cannabis products; or (3) allowing the submission of an order for cannabis or cannabis products. Sections 125-171 of this bill reenact and revise provisions of existing law governing the medical use of marijuana and reorganize such provisions into a new chapter of NRS governing the medical use of cannabis. Sections 139-144 and 166-169 of this bill reenact provisions of existing law governing the issuance of registry identification cards and letters of approval and the regulation of the holders of such cards and letters by the Division of Public and Behavioral Health of the Department of Health and Human Services. The reenactment of those provisions is not intended to substantively change those provisions, but merely to recodify the existing law alongside the other provisions of this bill. Sections 173-187 of this bill reenact and revise provisions of existing law governing the use of marijuana by persons 21 years of age or older and reorganize such provisions into a new chapter of NRS governing the adult use of cannabis. Existing law provides that it is lawful, and must not be the basis for prosecution or penalty by the State or a political subdivision of this State and must not in this State be a basis for seizure or forfeiture of assets, for a person 21 years of age or older to engage in certain actions relating to marijuana. (NRS 453D.110, 453D.130) Existing law similarly provides that it is lawful for certain marijuana establishments to engage in certain actions relating to marijuana. (NRS 453D.120) Section 178 of this bill provides for similar protections for persons and establishments engaged in certain actions relating to the adult use of cannabis. However, section 178 is modeled after the provisions of section 137 of this bill and provides an exemption from State prosecution for persons 21 years of age or older and cannabis establishments from certain actions relating to the adult use of cannabis. Sections 150 and 185 of this bill allow a dual licensee to combine the inventory of its medical cannabis establishments and adult-use cannabis establishments for the purpose of maintaining its inventory control system and require a dual licensee to designate a sale to be pursuant to either the provisions of this bill relating to the medical use of cannabis or the provisions of this bill relating to the adult use of cannabis. Sections 151 and 185 of this bill authorize a medical cannabis dispensary and an adult-use cannabis retail store to contract with a third party or intermediary business to deliver cannabis or cannabis products under certain circumstances. Section 196 of this bill exempts the Cannabis Compliance Board from the requirements of the Nevada Administrative Procedure Act. (NRS 233B.039) Sections 197.5, 198.5 and 199.5 of this bill prohibit a local government from licensing a business which allows the consumption of cannabis on its premises or allowing such a business to operate. Section 239.5 of this bill requires the Cannabis Compliance Board to conduct a study relating to such businesses. Existing law authorizes the State Department of Agriculture to adopt certain regulations relating to the testing of crops of industrial hemp and commodities and products made using industrial hemp by an independent testing laboratory. (NRS 557.270) Sections 213.5 and 227 of this bill divide the responsibility for the adoption of regulations relating to industrial hemp and commodities and products made using hemp between the State Department of Agriculture and the Department of Health and Human Services. Section 213.5 of this bill requires the Department of Health and Human Services to adopt regulations governing the testing and labeling of commodities and products made using industrial hemp and certain similar products containing cannabidiol which are intended for human consumption. Section 227 of this bill authorizes the State Department of Agriculture to adopt regulations governing all other industrial hemp and all other commodities and products made using industrial hemp. Sections 188-195, 197, 198, 199, 201-213, 214, 216-222, 224, 226, 227 and 229-237 of this bill make conforming changes. Primary Sponsor Assembly Committee on Judiciary