The newly created Nevada Cannabis Compliance Board (“NCCB”) is charged with overseeing all disciplinary proceedings governed by Nevada Revised Statutes 678A.500 to 678A.640 and has the authority to revoke cannabis establishment licenses and cannabis agent registration cards if the NCCB determines that a licensee has violated the statutes or regulations in a manner that that warrants revocation.
SUSPENSION OR REVOCATION:
Pursuant to NCCR 4.020 a violation of any of the provisions of Title 56 of Nevada Revised Statutes or any violation of the Nevada Cannabis Compliance Regulations (“NCCR”) is grounds for disciplinary action by the NCCB, including, without limitation, immediate revocation of a license for a cannabis establishment. Any violation of any of the provisions of Title 56 or NCCR is also grounds for the immediate revocation of a cannabis establishment registration card.
Under NCCR 4.030, the NCCB may impose a civil penalty of an amount up to $90,000 per violation on any person who fails to comply with or violates applicable statutes or the NCCR. Any monetary penalty must be paid to the State of Nevada for deposit into the general fund. The board may also suspend or revoke a license or cannabis establishment registration card. If the NCCB orders the suspension of a license or agent registration card, the NCCB shall prescribe the period of the suspension in the written decision. The Regulations of the NCCB identify five different categories of violations, with Category I being the most serious and Category V being the least serious.
The category under which an offender may be penalized is dependent on the specific conduct alleged and are subject to potential suspension suspensions of licenses and agent registration cards for up to 30 days. However, if corrective action approved by the NCCB will cure the noncompliance or violation but will not be completed withing 30 days after issues of the order, the NCCB may suspend the license or agent registration card for more than 30 days.
If the NCCB determines that a license or agent registration card should be revoked, the NCCB has the authority to prescribe a period of not less than one year or more than ten years, during which time, the person may not apply for reinstatement of the license or agent registration card.
To determine the amount of a civil penalty assessed, the NCCB 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 the NCCR, the effect of the penalty on the ability of the violator to continue in business and any other matter as justice may require.
Pursuant to NCCR 4.100, if a person applies for reinstatement of a license or cannabis establishment agent registration card that has been revoked, an application must be submitted on the appropriate form provided by the NCCB. The person must also satisfy all the current requirements for the issuance of an initial license or agent registration card. The person must attest that they have not, during the period of revocation, violated any state or federal law relating to cannabis, and no criminal action involving such a violation is pending against the person and that no regulatory body has taken disciplinary action against the person, and no such disciplinary action is pending. Further, the applicant must also satisfy any additional requirements of reinstatement of the license or agent registration card prescribed by the NCCB.
The NCCB will consider each application for reinstatement of a license or agent registration card submitted. In determining whether to reinstate the license or agent registration card, the NCCB will consider the severity of the act resulting in the revocation of the license or agent registration card, the conduct of the person after the revocation, the amount of time elapsed since the revocation, the veracity of the attestations made by the applicant, the degree of compliance by the applicant with any additional requirements for reinstatement, and the degree of rehabilitation demonstrated by the applicant.
If the NCCB reinstates the license or agent registration card, the NCCB may place any conditions, limitations or restrictions on the license or agent registration card as the NCCB deems necessary.
It should be noted that the NCCR 4.100 appears to be in direct conflict with the provisions of NCCR 4.030(1)(b) stating that a person may not apply for reinstatement during the revocation period. Therefore, NCCR 4.100 (5) provides that it shall not be interpreted to give any party or other person the right to reinstatement of the license or agent registration card.
The Cannabis Compliance Regulations are complicated and even the most minor violations can carry severe penalties. The Wright Law Group, P.C. has more than 28 years of experience defending licensees in administrative procedures and is well equipped to assist you in handling your case. If you have been served with a complaint or need representation before the Cannabis Compliance Board please call us at 702-405-0001 to schedule a consultation or email us.