Bill > AB341

Introduced Session

Legislative Counsel's Digest: Existing law provides for the licensure and regulation of persons and 1 establishments in the cannabis industry in this State by the Cannabis Compliance 2 Board. (Title 56 of NRS) Under existing law, a cannabis establishment is prohibited 3 from allowing a person to consume cannabis on the property or premises of the 4 establishment. (NRS 678B.510) Existing law also makes it a misdemeanor to 5 consume cannabis or a cannabis product in a public place, in an adult-use cannabis 6 retail store or in a vehicle. (NRS 678D.310) This bill provides for the licensure and 7 regulation by the Board of certain businesses at which the consumption of certain 8 cannabis and cannabis products is allowed. Section 2 of this bill designates such 9 businesses generally as cannabis consumption lounges. 10 Sections 3 and 5 of this bill designate two types of cannabis consumption 11 lounges. Section 5 of this bill defines retail cannabis consumption lounge to 12 mean a business at which the consumption of single-use or ready-to-consume 13 cannabis products is allowed and which is attached or immediately adjacent to an 14 adult-use cannabis retail store. Section 3 of this bill defines independent cannabis 15 consumption lounge to mean a business at which the consumption of single-use or 16 ready-to-consume cannabis products is allowed and which is not attached or 17 immediately adjacent to an adult-use cannabis retail store. 18 Section 5.5 of this bill defines single-use cannabis product to generally mean 19 a type of cannabis or adult-use cannabis product that the Board has determined to 20 be appropriate for consumption in a cannabis consumption lounge. Section 4 of this 21 bill defines ready-to-consume cannabis product to mean an adult-use edible 22 cannabis product that is presented as a foodstuff or beverage and is intended for 23 immediate consumption. Section 28 of this bill requires the Board to adopt 24 regulations designating types of cannabis and cannabis products as single-use 25 cannabis products and establishing requirements for the preparation and sale of 26 ready-to-consume cannabis products. Sections 19 and 30 of this bill provide that 27 certain requirements for cannabis products established under existing law do not 28 apply to ready-to-consume cannabis products to the extent that such requirements 29 are inconsistent with the regulations adopted by the Board. 30 Existing law prohibits a person from engaging in the business of an adult-use 31 cannabis establishment unless the person has been issued an adult-use cannabis 32 establishment license by the Board. Existing law sets forth certain requirements to 33 obtain such a license. (NRS 678B.250) Section 7 of this bill includes a retail 34 cannabis consumption lounge and an independent cannabis consumption lounge 35 within the definition of adult-use cannabis establishment provided under existing 36 law, thereby requiring persons who wish to operate such establishments to obtain 37 an adult-use cannabis establishment license in the manner provided in existing law. 38 (NRS 678A.035) 39 Sections 13.5 and 14 of this a bill prohibit a cannabis establishment, including 40 a cannabis consumption lounge, from being located on the property of an airport. 41 Section 10 of this bill prohibits the Board from issuing an adult-use cannabis 42 establishment license for a retail cannabis consumption lounge unless: (1) the 43 applicant holds an adult-use cannabis establishment license for an adult-use 44 cannabis retail store which is operational; and (2) the location of the proposed 45 retail cannabis consumption lounge is attached or immediately adjacent to the 46 adult-use cannabis retail store. Sections 10 and 14 of this bill exempt a proposed 47 retail cannabis consumption lounge from certain restrictions relating to the location 48 of an adult-use cannabis establishment. 49 Section 11 of this bill requires the Board to adopt regulations establishing 50 criteria to determine whether an applicant for the issuance or renewal of an adult-51 use cannabis establishment license for an independent cannabis consumption 52 lounge qualifies as a social equity applicant, which is defined by section 9 of this 53 bill generally as an applicant that has been adversely affected by previous laws that 54 criminalized activity relating to cannabis. Section 12 of this bill requires the Board 55 to adopt regulations establishing criteria of merit and scoring guidelines to be used 56 in evaluating applications for an adult-use cannabis establishment license for a 57 retail cannabis consumption lounge or an independent cannabis consumption 58 lounge. Section 17 of this bill establishes fees for the issuance and renewal of such 59 licenses. Section 17 authorizes the Board to reduce certain fees associated with an 60 adult-use cannabis establishment license for an independent cannabis consumption 61 lounge for social equity applicants. Section 16 of this bill makes a conforming 62 change to reflect the addition of the requirements of section 12. 63 Section 12.4 of this bill prohibits the Board, with certain exceptions, from 64 issuing more than 20 adult-use cannabis establishment licenses for an independent 65 cannabis consumption lounge. However, if on or before June 30, 2022, the Board 66 issues 20 such licenses, section 12.4 authorizes the Board to issue additional 67 licenses, so long as the total number of adult-use cannabis establishment licenses 68 for an independent cannabis consumption lounge does not, at any time, exceed the 69 number of adult-use cannabis establishment licenses for a retail cannabis 70 consumption lounge issued by the Board. Section 12.4 also requires that at least 10 71 of the first 20 adult-use cannabis establishment licenses for an independent 72 cannabis consumption lounge issued by the Board be issued to social equity 73 applicants. Section 12.5 of this bill sets forth certain requirements for the issuance 74 of adult-use cannabis establishment licenses for retail cannabis consumption 75 lounges and independent cannabis consumption lounges in a local governmental 76 jurisdiction that limits the number of business licenses issued to cannabis 77 consumption lounges, which include, among other requirements, that a certain 78 number of adult-use cannabis establishment licenses for independent cannabis 79 consumption lounges be issued to social equity applicants. 80 Existing law prohibits the Board from issuing more than a certain number of 81 adult-use cannabis establishment licenses to any one person, group of persons or 82 entity in certain counties. (NRS 678B.270) Section 15 of this bill provides that this 83 prohibition does not apply to adult-use cannabis establishment licenses for retail 84 cannabis consumption lounges or independent cannabis consumption lounges. 85 Instead, section 12.7 of this bill generally prohibits the Board from issuing more 86 than one such license to any one person. Section 12.7 provides an exception to this 87 prohibition for certain transfers of such licenses. Section 12.3 of this bill prohibits 88 the Board from issuing to any one person both an adult-use cannabis establishment 89 license for an adult-use cannabis retail store and an adult-use cannabis 90 establishment license for an independent cannabis consumption lounge. Section 20 91 of this bill requires the Board to adopt regulations prescribing the manner in which 92 it will determine whether a person who holds an adult-use cannabis establishment 93 license is ineligible to hold additional licenses pursuant to sections 12.3 and 12.7. 94 Existing law requires the Board to adopt regulations regarding the transfer of 95 licenses issued by the Board. (NRS 678B.380) Section 16.5 of this bill requires 96 those regulations to impose certain requirements and restrictions on the transfer an 97 adult-use cannabis establishment license for an independent cannabis consumption 98 lounge. 99 Sections 22 and 24 of this bill set forth certain requirements and restrictions 100 relating to the operation of a cannabis consumption lounge. Section 24 prohibits, 101 among other things, the consumption of any cannabis or cannabis product at a 102 cannabis consumption lounge that is not a single-use cannabis product or ready-to-103 consume cannabis product. Section 23 of this bill authorizes a cannabis 104 consumption lounge to engage in certain activities. Section 20 requires the Board to 105 adopt certain regulations concerning the operation of cannabis consumption 106 lounges. 107 Section 25 of this bill authorizes a retail cannabis consumption lounge to obtain 108 single-use cannabis products from the adult-use cannabis retail store to which the 109 lounge is attached or adjacent and sell such products to customers of the lounge. 110 Section 25 also authorizes a retail cannabis consumption lounge to prepare and sell 111 ready-to-consume cannabis products. 112 Section 27 of this bill requires an independent cannabis consumption lounge to 113 enter into a contract with one or more adult-use cannabis retail stores to obtain 114 single-use cannabis products for resale and cannabis or cannabis products for use in 115 the preparation of ready-to-consume cannabis products. Section 27 authorizes an 116 independent cannabis consumption lounge that has entered into such a contract to: 117 (1) sell single-use cannabis products to customers of the lounge; and (2) prepare 118 and sell ready-to-consume cannabis products to customers of the lounge. 119 Existing law prohibits a board of county commissioners, the governing body of 120 an incorporated city or a town board from licensing or otherwise allowing a person 121 to operate a business that allows cannabis or cannabis products to be consumed on 122 the premises of the business. (NRS 244.335, 268.095, 269.170) Existing law 123 eliminates this prohibition effective July 1, 2021. (Section 246 of chapter 595, 124 Statutes of Nevada 2019, at page 3896) Sections 36.7 and 36.9 of this bill remove 125 the prospective elimination of this prohibition. Instead, sections 30.6-30.9 of this 126 bill prohibit, with certain exceptions, such a local government from licensing or 127 otherwise allowing the operation of a business that allows cannabis or cannabis 128 products to be consumed on the premises of the business, other than a cannabis 129 consumption lounge, in accordance with the provisions of this bill. 130 Section 30.5 of this bill establishes provisions relating to the civil liability of a 131 person who serves, sells or furnishes cannabis or a cannabis product to another 132 person for damages caused as a result of the consumption of the cannabis or 133 cannabis product, which are based on similar provisions of existing law concerning 134 alcoholic beverages. (NRS 41.1305) 135 Existing law imposes an excise tax on each retail sale of cannabis or cannabis 136 products by an adult-use cannabis retail store. (NRS 372A.290) Section 34 of this 137 bill applies this excise tax to retail sales of cannabis and cannabis products by a 138 cannabis consumption lounge. Sections 31 and 33 of this bill make conforming 139 changes to reflect the imposition of the excise tax on such sales. 140 Section 18 of this bill revises provisions of existing law prohibiting the 141 consumption of cannabis and cannabis products in a cannabis establishment for the 142 purpose of authorizing a person to engage in such activities in a cannabis 143 consumption lounge. (NRS 678B.510) 144 Existing law prohibits, in general, the consumption of cannabis or cannabis 145 products in a public place. (NRS 678C.300, 678D.300, 678D.310) Section 12.9 of 146 this bill authorizes the Board to adopt regulations setting forth circumstances under 147 which a person is authorized to consume cannabis or cannabis products in a public 148 place. Sections 20.5, 28.5 and 29 of this bill revise provisions of existing law 149 prohibiting a person from consuming cannabis or cannabis products in a public 150 place for the purpose of authorizing a person to engage in such activities in a public 151 place in accordance with the regulations adopted by the Board pursuant to 152 section 12.9. 153 Existing law prohibits a person from opening or maintaining a place for the 154 purpose of unlawfully selling, giving away or using any controlled substance. (NRS 155 453.316) Section 36 of this bill exempts from the application of this provision: (1) 156 a cannabis consumption lounge whose activities are confined to those authorized 157 under the provisions of this bill; and (2) any person who opens or maintains a 158 public place at which a person is authorized to consume cannabis or cannabis 159 products pursuant to regulations adopted by the Board pursuant to section 12.9 and 160 whose activities are confined to those authorized by such regulations. 161 Section 36.3 of this bill requires the Board to provide each person who, on 162 July 1, 2021, holds an adult-use cannabis establishment license for an adult-use 163 cannabis retail store a written notification informing the person that the person may 164 be eligible to hold an adult-use cannabis establishment license for a retail cannabis 165 consumption lounge. 166 Section 36.5 of this bill requires the Board, on or before January 1, 2023, to 167 submit to the Legislature a report containing certain information regarding the 168 effect of certain violations of the Nevada Unfair Trade Practice Act on independent 169 cannabis consumption lounges. 170 Sections 2-5.5 and 9 of this bill define words and terms applicable to the 171 provisions of this bill. Sections 6 and 32 of this bill make conforming changes to 172 properly place new language in the Nevada Revised Statutes. Section 35 of this bill 173 makes a conforming change to reflect the addition of the provisions of section 17. 174 SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 678A of NRS is hereby amended by 1 adding thereto the provisions set forth as sections 2 to 5.5, inclusive, 2 of this act. 3 Sec. 2. Cannabis consumption lounge means: 4 1. A retail cannabis consumption lounge; or 5 2. An independent cannabis consumption lounge. 6 Sec. 3. Independent cannabis consumption lounge means 7 a business that: 8 1. Is licensed by the Board pursuant to NRS 678B.250; 9 2. Is not attached or immediately adjacent to an adult-use 10 cannabis retail store; and 11 3. Allows single-use cannabis products or ready-to-consume 12 cannabis products to be consumed on the premises of the business 13 by persons 21 years of age or older. 14 Sec. 4. Ready-to-consume cannabis product means an 15 adult-use edible cannabis product that is: 16 1. Prepared on the premises of a cannabis consumption 17 lounge; 18 2. Presented in the form of a foodstuff or beverage; 19 3. Sold in a heated or unheated state; and 20 4. Intended for immediate consumption. 21 Sec. 5. Retail cannabis consumption lounge means a 22 business that: 23 1. Is licensed by the Board pursuant to NRS 678B.250; 24 2. Is attached or immediately adjacent to an adult-use 25 cannabis retail store; and 26 3. Allows single-use cannabis products or ready-to-consume 27 cannabis products to be consumed on the premises of the business 28 by persons 21 years of age or older. 29 Sec. 5.5. Single-use cannabis product means a type of 30 cannabis or adult-use cannabis product, other than a ready-to-31 consume cannabis product, that the Board has determined to be 32 appropriate for consumption in a cannabis consumption lounge 33 pursuant to section 28 of this act. 34

AI Summary

Committee Categories

Steve Yeager (D)*, 

Approved by the Governor. Chapter 387. (on 06/04/2021)

Official Document