Nev. Admin. Code § 453A.Sec. 120

Current through June 11, 2024

Section 453A.Sec. 120 - NEW

1. The Department may:

(a) Subject to the provisions of subsection 4, impose a civil penalty of not more than $35,000 on any person who fails to comply with or violates any provision of this chapter or NRS 453D.300;

(b) Except as otherwise provided in paragraph (c), revoke or suspend for not less than 3 days and not more than 30 days the license of any marijuana establishment or the marijuana establishment agent registration card of any person who fails to comply with or violates the provisions of this chapter or chapter 453D of NRS; and

(c) If corrective action approved by the Department will cure the noncompliance or violation but will not be completed within 30 days after issuance of the order, suspend for more than 30 days the license of a marijuana establishment or the marijuana establishment agent registration card of a person who fails to comply with or violates the provisions of this chapter or chapter 453D of NRS.

2. To determine the amount of a civil penalty assessed pursuant to this section, the Department will consider the gravity of the violation, the economic benefit or savings, if any, resulting from the violation, the size of the business of the violator, the history of compliance with this chapter and chapter 453D of NRS by the violator, action taken to remedy the violation, the effect of the penalty on the ability of the violator to continue in business and any other matter as justice may require.

3. The Department will determine the category of a violation of this chapter or chapter 453D of NRS as follows:

(a) Category I violations are violations of a severity that make a person ineligible to receive a license, including, without limitation:

(1) Conviction of an excluded felony offense;

(2) Operating without all required permits, certificates and licenses;

(3) Making an intentionally false statement to the Department;

(4) Intentionally destroying or concealing evidence;

(5) Intentionally failing to pay taxes to the Department;

(6) Allowing noisy, disorderly or unlawful activity that results in death or serious physical injury, that involves the unlawful use or attempted use of a deadly weapon against another person or that results in a sexual offense which is a category A felony;

(7) Operating a marijuana establishment while the license for the marijuana establishment is suspended or revoked; or

(8) Transporting marijuana outside of the boundaries of this State, except where authorized by an agreement between the Governor of this State and a participating tribal government.

(b) Category II violations are violations that create a present threat to public health or safety, including, without limitation:

(1) Making an unintentional false statement or representation of fact to the Department;

(2) Failing to promptly admit regulatory or law enforcement personnel into the premises of a marijuana establishment;

(3) Unintentionally destroying or concealing evidence;

(4) Failing to notify the Department of a change of ownership;

(5) Denying access by law enforcement or regulatory personnel to the premises of the marijuana establishment during regular business hours;

(6) Allowing noisy, disorderly or unlawful activity that involves use of a dangerous weapon against another person with intent to cause death or serious physical injury;

(7) Allowing a person who is less than 21 years of age to work or volunteer at the marijuana establishment;

(8) Refusing to allow an inspection or obstructing a law enforcement officer from performing his or her official duties;

(9) Failing to cease operation and notify the Department during an imminent health hazard;

(10) Purchasing marijuana from an unapproved source;

(11) Purchasing or selling marijuana that has not passed the analysis required by a marijuana testing facility without written approval from the Department;

(12) Operating an unapproved extraction unit;

(13) Selling an amount of marijuana in excess of transaction limits; or

(14) Failing to maintain required security alarm and surveillance systems pursuant to section 111 of this regulation.

(c) Category II(b) violations are violations for failing to verify the age of, or selling or otherwise providing marijuana or marijuana paraphernalia to, a person who is less than 21 years of age.

(d) Category III violations are violations that create a potential threat to public health or safety, including, without limitation:

(1) Allowing a person who is less than 21 years of age to enter or remain in a marijuana establishment or transport vehicle unless the person holds a registry identification card or letter of approval;

(2) Permitting sales by a person without a marijuana establishment agent registration card unless that person is deemed to be temporarily registered pursuant to section 94 of this regulation;

(3) Allowing consumption by any person of alcohol, marijuana or other intoxicants on the premises of the marijuana establishment or in areas adjacent to the premises of the marijuana establishment which are under the licensee's control, including, without limitation, a parking lot;

(4) Failing to keep any required records, including seed-to-sale tracking requirements;

(5) Failing to tag all plants as required;

(6) Failing to follow an approved security plan;

(7) Allowing disorderly activity;

(8) Allowing any activity which violates the laws of this State;

(9) Failing to notify the Department within 24 hours after discovery of a serious incident or criminal activity on the premises of the marijuana establishment;

(10) Unintentionally failing to pay taxes to the Department;

(11) Selling unauthorized products;

(12) Failing to notify the Department of a modification or expansion of the facilities of the marijuana establishment or a change in equipment or menu of the marijuana establishment;

(13) Violating packaging or labeling requirements;

(14) Storing or delivering an unapproved marijuana product;

(15) Failing to meet requirements for the disposal of marijuana waste;

(16) Using unauthorized pesticides, soil amendments, fertilizers or other crop production aids;

(17) Exceeding the maximum serving requirements for marijuana products;

(18) Exceeding a reasonable time frame for delivery without approval from the Department;

(19) Transporting or storing marijuana from an unlicensed source or diversion of marijuana or marijuana products;

(20) Picking up, unloading or delivering marijuana at an unauthorized location;

(21) Failing to comply with requirements for hand washing and employee hygiene, including, without limitation, using a bare hand on a marijuana product;

(22) Failing to maintain proper temperature of potentially hazardous food or marijuana products;

(23) Failing to comply with requirements for water temperature;

(24) Failing to prevent backflow of plumbing; or

(25) Selling or failing to dispose of marijuana, marijuana products or food items that are spoiled or contaminated.

(e) Category IV violations are violations that create a climate which is conducive to abuses associated with the sale or production of marijuana or marijuana products, including, without limitation:

(1) Failing to display or have in the immediate possession of each marijuana establishment agent a marijuana establishment agent registration card or proof of temporary registration;

(2) Removing, altering or covering a notice of suspension of a license or any other required notice or sign;

(3) Violating advertising requirements;

(4) Displaying products in a manner visible to the general public from a public right of way;

(5) Failing to respond to an administrative notice of a violation or failing to pay fines;

(6) Violating restrictions on sampling;

(7) Failing to maintain a standardized scale as required;

(8) Transporting marijuana in an unauthorized vehicle;

(9) Improper storing of marijuana, marijuana products or other foods;

(10) Failing to properly wash, rinse and sanitize product contact surfaces as required;

(11) Failing to maintain hand-washing facilities that are stocked, accessible and limited to hand washing only;

(12) Infestation by pests that are not multigenerational or on contact surfaces;

(13) Failing to properly use sanitizer as required; or

(14) Violating any transportation or delivery requirements not described in another category of violations.

(f) Category V violations are violations that are inconsistent with the orderly regulation of the sale or production of marijuana or marijuana products, including, without limitation:

(1) Failing to submit monthly tax or sales reports or payments;

(2) Failing to notify the Department of a temporary closure of the marijuana establishment;

(3) Failing to post any required signs;

(4) Failing to notify the Department of a change in the name of the marijuana establishment;

(5) Making a payment with a check returned for insufficient funds; or

(6) Failing to comply with any other requirements not described in another category of violations.

4. Before consideration of the factors described in subsection 2, the Department will presume that the following are appropriate penalties for violations of this chapter or chapter 453D of NRS:

(a) For a category I violation which is the:

(1) First violation in the immediately preceding 2 years, a civil penalty of not more than $35,000 and a suspension for not more than 30 days or revocation of a license or marijuana establishment agent registration card.

(2) Second or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

(b) For a category II violation which is the:

(1) First violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 and a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

(2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $20,000 and a suspension for not more than 30 days of a license or marijuana establishment agent registration card.

(3) Third or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

(c) For a category II(b) violation which is the:

(1) First violation in the immediately preceding 2 years, a civil penalty of not more than $5,000.

(2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 or a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

(3) Third violation in the immediately preceding 2 years, a suspension for not more than 30 days of a license or marijuana establishment agent registration card.

(4) Fourth or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

(d) For a category III violation which is the:

(1) First violation in the immediately preceding 2 years, a civil penalty of not more than $2,500.

(2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $5,000 or a suspension for not more than 10 days of a license or marijuana establishment agent registration card.

(3) Third violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 or a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

(4) Fourth violation in the immediately preceding 2 years, a suspension for not more than 30 days of a license or marijuana establishment agent registration card.

(5) Fifth or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

(e) For a category IV violation which is the:

(1) First violation in the immediately preceding 2 years, a civil penalty of not more than $1,250.

(2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $2,500 or a suspension for not more than 7 days of a license or marijuana establishment agent registration card.

(3) Third violation in the immediately preceding 2 years, a civil penalty of not more than $5,000 or a suspension for not more than 10 days of a license or marijuana establishment agent registration card.

(4) Fourth violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 or a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

(5) Fifth violation in the immediately preceding 2 years, a suspension for not more than 30 days of a license or marijuana establishment agent registration card.

(6) Sixth or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

(f) For a category V violation which is the:

(1) First violation in the immediately preceding 2 years, a warning.

(2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $750.

(3) Third violation in the immediately preceding 2 years, a civil penalty of not more than $1,250 or a suspension for not more than 3 days of a license or marijuana establishment agent registration card.

(4) Fourth violation in the immediately preceding 2 years, a civil penalty of not more than $2,500 or a suspension for not more than 7 days of a license or marijuana establishment agent registration card.

(5) Fifth violation in the immediately preceding 2 years, a civil penalty of not more than $5,000 or a suspension for not more than 10 days of a license or marijuana establishment agent registration card.

(6) Sixth or subsequent violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 or a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

5. The Department will determine whether an event is an imminent health hazard that requires immediate correction or cessation of operations to prevent injury based on the nature, severity and duration of any anticipated injury, illness or disease and the number of injuries or illnesses to members of the public which may occur. Events that are presumed to be imminent health hazards include, without limitation:

(a) Interruption of electrical service;

(b) Lack of potable water or hot water;

(c) Grossly unsanitary occurrences or conditions including, without limitation, pest infestation or sewage or liquid waste not being disposed of in an approved manner;

(d) Lack of adequate refrigeration;

(e) Lack of adequate toilet and hand-washing facilities for employees;

(f) Misuse of poisonous or toxic materials;

(g) A suspected outbreak of foodborne illness;

(h) A fire or flood; or

(i) Any other condition or circumstance which endangers public health.

Nev. Admin. Code § 453A.Sec. 120

Added to NAC by Div. of Pub. & Behavioral Health by R092-17AP, eff. 2/27/2018

NRS 453D.200