SB12 - Revises provisions relating to cannabis. (BDR 56-147)

S.B. 12 - *SB12* SENATE BILL NO. 12–COMMITTEE ON COMMERCE AND LABOR (ON BEHALF OF THE CANNABIS COMPLIANCE BOARD) PREFILED OCTOBER 28, 2026 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to cannabis. (BDR 56-147) FISCAL NOTE: Effect on Local Government: No. Effect on the State: May have Fiscal Impact. Effect on the State Highway Fund: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to cannabis; revising requirements concerning hold orders issued by an agent of the Cannabis Compliance Board; setting forth requirements concerning conditions constituting a substantial hazard to the public safety at a cannabis establishment; prohibiting, with certain exceptions, an image of fruit from being used on the packaging of cannabis or a cannabis product; revising requirements for advertising by a cannabis establishment; revising the list of items that a cannabis sales facility is authorized to sell; limiting the applicability of the requirement that the Board establish an electronic database containing certain information relating to testing; authorizing a cannabis consumption lounge to obtain cannabis or cannabis products from any adult-use cannabis establishment; exempting the Board from the requirement to reimburse the Legislative Counsel Bureau for the cost of examining and revising a permanent regulation; expanding the circumstances under which an enforcement agent of the Board has the powers of a peace officer; and providing other matters properly relating thereto. – 2 – - *SB12* Legislative Counsel’s Digest: Existing law requires the Cannabis Compliance Board to adopt regulations 1 setting forth procedures and requirements for the issuance of a hold order for 2 cannabis or a cannabis product. Under existing law, the regulations must authorize 3 an agent of the Board to issue a hold order only under circumstances in which 4 cannabis or a cannabis product fails to satisfy a requirement set forth in the 5 provisions of existing law governing cannabis or the regulations adopted pursuant 6 thereto and constitutes a substantial hazard to the public health. (NRS 678A.455) 7 Section 1 of this bill instead requires the regulations to authorize the issuance of a 8 hold order only under circumstances in which cannabis or a cannabis product fails 9 to satisfy a requirement set forth in any statute or regulation and constitutes a 10 substantial hazard to the public health or public safety. 11 Existing law additionally requires the regulations governing hold orders to 12 require a hold order to be automatically terminated not later than 30 days after its 13 issuance unless the Board extends the duration of the hold order after notice and a 14 hearing and for good cause shown. (NRS 678A.455) Section 1 revises that 15 requirement to require a hearing to be held before the extension of the duration of a 16 hold order only if the cannabis establishment to which notice of the extension was 17 provided requests the hearing. 18 Existing law sets forth procedures by which an agent of the Board who finds a 19 condition in the operation of a cannabis establishment which constitutes a 20 substantial hazard to the public health may issue an order that may require the 21 immediate suspension of the license and discontinuance of the operations of the 22 cannabis establishment. (NRS 678B.3875) Existing law requires the Board to adopt 23 certain regulations concerning substantial hazards to the public health which may 24 exist at a cannabis establishment. Existing law defines “substantial hazard to the 25 public health” for the purpose of those provisions to include certain specified 26 conditions. (NRS 678B.387) Sections 2 and 3 of this bill: (1) expand the scope of 27 those provisions to apply to substantial hazards to the public health or public safety, 28 rather than only substantial hazards to the public health; and (2) define “substantial 29 hazard to the public health or public safety” to include the conditions set forth 30 under existing law concerning substantial hazards to the public health and also 31 additional conditions relating to public safety. 32 Existing law prohibits a cannabis establishment from using, among other 33 images, an image of fruit in advertising by the establishment. (NRS 678B.520) 34 Section 4 of this bill removes that prohibition. Section 5 of this bill, effective 35 July 1, 2028, prohibits a cannabis product from being presented in packaging that 36 contains an image of fruit, except that such an image is authorized to be used in the 37 logo of the cannabis production facility which produced the product. 38 Existing law sets forth the items that a cannabis sales facility may sell. (NRS 39 678B.520) Existing law authorizes a food safety authority to exempt a food 40 establishment from the provisions of existing law governing the permitting and 41 regulation of food establishments under certain circumstances. (NRS 580.900) 42 Section 4 authorizes a cannabis sales facility which has been so exempted to sell 43 any food that does not contain THC or cannabidiol which is authorized pursuant to 44 the exemption. 45 Existing law requires a cannabis establishment to ensure that all advertising by 46 the cannabis establishment contains such warnings as may be prescribed by the 47 Board. (NRS 678B.520) Section 4 sets forth requirements concerning how such 48 warnings must be displayed on the advertisement if the advertisement is displayed 49 visually. 50 Existing law requires the Board to develop, implement and maintain an 51 electronic database whereby the public may obtain information relating to testing 52 conducted on cannabis and cannabis products by cannabis independent testing 53 laboratories which has been collected through computer software used for the 54 – 3 – - *SB12* seed-to-sale tracking of cannabis and cannabis products. (NRS 678B.635) Section 55 6 of this bill provides that those requirements apply only to the extent that: (1) 56 money is available for the purpose of carrying out those requirements; and (2) the 57 provider of the computer software used for the seed-to-sale tracking of cannabis 58 and cannabis products adopted by the Board is able to make the computer software 59 compatible with the electronic database for the purpose of carrying out those 60 requirements. 61 Under existing law, a cannabis consumption lounge may obtain cannabis or 62 cannabis products for the purposes of resale or the production of ready-to-consume 63 cannabis products only from: (1) for a retail cannabis consumption lounge, the 64 adult-use cannabis retail store to which the lounge is attached or immediately 65 adjacent; and (2) for an independent cannabis consumption lounge, an adult-use 66 cannabis retail store with which the lounge has entered into a contract. (NRS 67 678D.470, 678D.475) Sections 7 and 10 of this bill revise those requirements to 68 instead allow a cannabis consumption lounge to obtain cannabis and cannabis 69 products for the purposes of resale or the production of ready-to-consume cannabis 70 products from any adult-use cannabis establishment. 71 Existing law requires any state agency subject to the Nevada Administrative 72 Procedure Act that intends to adopt, amend or repeal a permanent regulation to 73 deliver a copy of the proposed regulation to the Legislative Counsel for 74 examination and revisions. (NRS 233B.063) Existing law requires a state agency to 75 reimburse the Legislative Counsel Bureau for the cost of the examination and 76 revisions. (NRS 233B.0635) Section 8 of this bill exempts the Board from the 77 requirement to pay such reimbursement costs. 78 Existing law provides that a person designated as an enforcement agent by the 79 Board is a peace officer for the purpose of the enforcement of the provisions of 80 existing law governing cannabis, including, without limitation, the prevention of 81 unlicensed cannabis sales. (NRS 289.355) Section 9 of this bill expands the 82 circumstances under which such an enforcement agent has the powers of a peace 83 officer. 84 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 678A.455 is hereby amended to read as 1 follows: 2 678A.455 1. An agent of the Board may issue a hold order 3 for cannabis or a cannabis product to prohibit a person from 4 transferring or moving the cannabis or cannabis product subject to 5 the order without the approval of the Board or an agent of the Board 6 only in accordance with the regulations adopted by the Board 7 pursuant to this section. 8 2. The Board shall adopt regulations setting forth procedures 9 and requirements for the issuance of a hold order for cannabis or a 10 cannabis product. The regulations must: 11 (a) Authorize an agent of the Board to issue a hold order only 12 under circumstances in which cannabis or a cannabis product fails to 13 satisfy a requirement set forth in [this title or the regulations adopted 14 pursuant thereto] any statute or regulation and constitutes a 15 substantial hazard to the public health [.] or public safety. 16 – 4 – - *SB12* (b) Require that at or before the time of issuance of a hold order 1 notice be provided to the cannabis establishment whose cannabis or 2 cannabis product is subject to the hold order stating the reasons for 3 the hold order. 4 (c) Require a hold order to be automatically terminated not later 5 than 30 days after its issuance unless the Board [, after notice and a 6 hearing and for good cause shown,] extends the duration of the hold 7 order [.] after: 8 (1) Providing notice to the cannabis establishment whose 9 cannabis or cannabis product is subject to the hold order of the 10 intent of the Board to extend the duration of the hold order; and 11 (2) If the cannabis establishment to which notice is 12 provided pursuant to subparagraph (1) requests a hearing on the 13 matter, showing good cause for the extension of the duration of 14 the hold order at the hearing. 15 (d) Set forth the circumstances under which a hold order may be 16 terminated. Such circumstances must include, without limitation, for 17 cannabis or a cannabis product subject to a hold order because of the 18 failure of any test conducted by a cannabis independent testing 19 laboratory, the passing of that test upon retesting of the cannabis or 20 cannabis product. 21 (e) Require the Board to publish guidelines concerning hold 22 orders which are based on investigations conducted by the Board 23 relating to such hold orders. 24 3. A person shall not transfer or move any cannabis or cannabis 25 product for which a hold order has been issued pursuant to the 26 regulations adopted pursuant to this section without the approval of 27 the Board or an agent of the Board. 28 Sec. 2. NRS 678B.387 is hereby amended to read as follows: 29 678B.387 1. The Board shall adopt regulations establishing: 30 (a) Procedures pursuant to which a cannabis establishment must 31 immediately discontinue operations and notify the Board upon 32 becoming aware that a condition constituting a substantial hazard to 33 the public health or public safety exists at the cannabis 34 establishment. Such procedures must not require a cannabis 35 establishment at which a substantial hazard to the public health or 36 public safety exists to discontinue operations if the hazard affects a 37 discrete area of the cannabis establishment and the Board has 38 approved a plan to allow the cannabis establishment to continue 39 operations in the areas of the cannabis establishment unaffected by 40 the hazard. 41 (b) Procedures and requirements for a cannabis establishment to 42 resume operations after a substantial hazard to the public health or 43 public safety has been found to exist at the cannabis establishment. 44 – 5 – - *SB12* 2. As used in this section, “substantial hazard to the public 1 health [”] or public safety” means any of the following: 2 (a) A fire or flood. 3 (b) Interruption of electrical service for more than 2 hours. 4 (c) Interruption of water service. 5 (d) Interruption in the operation of any security system. 6 (e) Sewage backup. 7 [(e)] (f) The misuse of poisonous or toxic materials. 8 [(f)] (g) The onset of an apparent food-borne illness outbreak. 9 [(g)] (h) A gross insanitary occurrence or condition. 10 [(h)] (i) The failure of a cannabis establishment to maintain 11 all licenses required for the operation of the cannabis 12 establishment. 13 (j) Any other occurrence or condition that may endanger the 14 public health [.] or public safety. 15 Sec. 3. NRS 678B.3875 is hereby amended to read as follows: 16 678B.3875 1. Whenever an agent of the Board finds a 17 condition in the operation of a cannabis establishment which 18 constitutes a substantial hazard to the public health or public safety 19 as defined in NRS 678B.387, the agent may, without warning, 20 notice or hearing, issue a written order to the licensee citing the 21 condition, specifying the corrective action to be taken and 22 specifying the time within which the action must be taken. Except as 23 otherwise provided in subsection 3, the order may state that the 24 license of the cannabis establishment is immediately suspended and 25 all operations must be immediately discontinued. Any person to 26 whom such an order is issued shall comply with it immediately. 27 Upon written petition to the Board, the person must be afforded a 28 hearing before a hearing officer as soon as possible, but not later 29 than 14 days after the date on which the order was issued unless the 30 Board and the licensee agree in writing to a longer period. 31 2. Any licensee whose license has been suspended pursuant to 32 subsection 1 may, at any time, make an application for a 33 reinspection for reinstatement of the license. As soon as practicable, 34 but not more than 2 business days following receipt of a written 35 request, including a statement signed by the applicant that in the 36 opinion of the applicant the conditions causing the suspension of the 37 license have been corrected, the Board shall make a reinspection. If 38 the applicant is complying with all applicable requirements of this 39 title and the regulations adopted pursuant thereto, the license must 40 be reinstated. 41 3. An or [Text truncated for display. Full text available on LegiScan.]