AN ACT relating to cannabis; revising certain requirements relating to the packaging, labeling and delivery of cannabis and cannabis products; authorizing certain persons to enter into a joint-venture agreement with certain cannabis establishments; revising provisions relating to cannabis consumption lounges; prohibiting the Cannabis Compliance Board from imposing certain requirements on cannabis establishments; revising the definition of “usable cannabis”; revising provisions relating to the seizure and destruction of cannabis; revising provisions relating to certain taxes imposed on sales of cannabis and cannabis products; authorizing the Department of Taxation to impose an administrative fine upon a person who engages in the unlicensed sale of cannabis or cannabis products; revising the powers of the Investigation Division of the Department of Public Safety; requiring the Board and the Nevada Gaming Control Board to prepare a report concerning certain issues relating to cannabis and gaming; and providing other matters properly relating thereto.
Sponsored By: Max E. Carter II (Democratic)
Failed
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 6 benefits, 3 costs, 0 mixed.
Easier entry and transfers for cannabis lounges
Social equity applicants for independent adult-use cannabis lounges do not have to submit proof of liquid assets covering opening and compliance costs. The law removes the required ban on transferring an independent lounge license during its first 2 years of operation. It also removes required license surrender when a lounge closes before 2 years, and the related license-reserve requirement. Transfers remain subject to applicable Board rules.
New cannabis partnerships for social equity operators
Qualifying social equity operators without a cannabis license can partner with licensed cultivation or production facilities, including through profit sharing. Operators must meet the Cannabis Compliance Board’s criteria for past harm from cannabis criminalization. The Board must approve the agreement, and all business operations must occur on the partner facility’s premises under Board rules. Owners, officers, board members, volunteers, workers, and labor contractors need cannabis establishment agent registration cards. The facility must notify local government after approval. Authorized activities receive protection from specified state prosecutions, property seizure or forfeiture, and civil penalties. The approved agreement alone cannot justify a search or government inspection; other legal grounds still apply.
More delivery options for cannabis customers
Cannabis sales facilities and their contracted delivery providers can deliver to more locations while following state cannabis requirements. Delivery destinations exclude school property, including preschool through grade 12, community facilities, and airports. Within 1,500 feet of a qualifying nonrestricted gaming establishment, delivery is allowed only to an authorized private residence. Distance is measured in a straight line between property lines. An authorized residence cannot be connected to, share a building with, or be owned or operated by a gaming licensee or affiliate. The Cannabis Compliance Board cannot require its own vehicle inspection before a delivery vehicle is used.
Seeds and stalks leave cannabis limits
Seeds, stalks, and roots do not count as usable cannabis under Nevada’s applicable cannabis limits. Dried leaves and flowers still count, along with suitable mixtures or preparations made from them for medical or adult use.
Fewer duplicate labels for cannabis businesses
The Cannabis Compliance Board cannot require product labels to repeat information already on the immediate consumer-facing wrapper or container. Businesses can place the bold warning “THIS PRODUCT CONTAINS CANNABIS” on packaging instead of the label. Required child-safety wording, ingredients, major allergens, and other Board-required information can appear on the label or inside the packaging. The information is still required. For wholesale packages, the Board can require only labels or tags needed for its seed-to-sale tracking software.
Less recordkeeping for cannabis businesses
The Cannabis Compliance Board cannot require cannabis sales facilities to keep visitor logs. It also cannot require cannabis businesses to keep sales-transaction records for more than 3 years. When the Board requires a quarterly inventory, it must allow an agent outside regular inventory management to conduct it. Regular inventory management means overseeing inventory, being listed as an inventory agent in the Board’s tracking software, and doing daily or routine inventory-system tasks.
Cannabis Board can destroy seized excess
The Cannabis Compliance Board is treated as a law-enforcement agency under the seized-marijuana destruction rules. Without prior district court approval, an agency can destroy only the amount exceeding 10 pounds. It must weigh and record the substance, retain required samples, take photographs, and file the required affidavit. Owners can claim reasonable value if the destroyed substance is later proven not to be marijuana.
Stronger enforcement against unlicensed cannabis activity
Nevada’s Public Safety Investigation Division must work with the Cannabis Compliance Board and state and local agencies against unlicensed cannabis activity. When requested, it must also assist specified state agencies with cannabis-related criminal investigations, including tax and health investigations.
Unlicensed cannabis sellers face taxes and fines
Cannabis retailers must follow Nevada sales-tax payment, collection, and remittance rules even without a state cannabis license. The Department of Taxation can also fine unlicensed sellers an amount equal to the applicable cannabis excise tax. For resale transactions, the fine matches the tax owed by a licensed adult-use cultivation facility. For sales for use or consumption, it matches the tax owed by a licensed adult-use retail store. Existing tax administration and enforcement rules apply when consistent, and the state can pursue multiple remedies together.
Sponsors & Cosponsors
Sponsor
Max E. Carter II
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
(No further action taken.)
6/3/2025HouseTo committee.
4/23/2025HouseFrom printer. To engrossment. Engrossed. First reprint.
4/23/2025HouseTo printer.
4/21/2025HouseRereferred to Committee on Ways and Means. Exemption effective.
4/21/2025HouseTaken from General File.
4/21/2025HouseRead second time. Amended. (Amend. No. 276.)
4/21/2025HousePlaced on Second Reading File.
4/21/2025HouseFrom committee: Amend, and do pass as amended.
4/21/2025HouseNotice of eligibility for exemption.
3/5/2025HouseFrom printer. To committee.
2/5/2025HouseTo printer.
2/4/2025HouseRead first time.
2/4/2025HouseReferred to Committee on Judiciary.
2/3/2025HousePrefiled.
2/3/2025House
Bill Text
As Introduced
Reprint 1
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