The State of Nevada has created and empowered a new administrative department to oversee and enforce statutes and regulations related to the cultivation and distribution of Cannabis and Cannabis products. This new administrative department is known as the Nevada Cannabis Compliance Board (“NCCB”). The NCCB is overseen by a chairperson whose responsibility is to conduct and oversee regular and special meetings of the NCCB. The 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 and issue corrective action orders.
NCCB HAS BROAD INVESTIGATIVE POWERS:
Under the Regulations of the NCCB, the NCCB has the authority to conduct inspections and investigations. It also has the authority to summon witnesses and issue subpoenas. The submission of an application for a license for a cannabis establishment constitutes permission for entry to and reasonable inspection of the cannabis establishment by the NCCB and its agents, with or without notice. An inspector conducting an inspection pursuant to NCCB regulations does not need to be accompanied during the inspection.
Upon receipt of a complaint against a cannabis establishment, the Executive Director of NCCB may conduct an investigation during the operating hours of the cannabis establishment, with or without notice, into the premises, facilities, qualifications of personnel, methods of operation, policies, procedures and records of that cannabis establishment or any other cannabis establishment which may have information pertinent to the complaint. NCCB agents may enter and inspect any building or premises at any time, with or without notice, to secure compliance with any provision of the NCCR or Title 56 of Nevada Revised Statutes. NCCB agents may also conduct an investigation to prevent a violation of any provision of NCCR or Title 56, or conduct an unannounced inspection of a cannabis establishment in response to any allegation of noncompliance.
The NCCB may summon witnesses to appear and testify on any subject material to its responsibilities under the regulations. The NCCB may also issue a subpoena to compel the attendance of witnesses and the production of books and papers and may petition any court of competent jurisdiction to compel the same. The NCCB and/or its agents may inspect and examine all premises where cannabis is manufactured, sold, or distributed, including all equipment and supplies in, upon, or about such premises. The NCCB may summarily seize and remove from such premises any cannabis or cannabis products and impound any equipment, supplies, documents, or records for the purpose of examination and inspection.
NCCB agents will enter and inspect at least annually, with or without notice, each building or the premises of a cannabis establishment to ensure compliance with provisions of NCCB regulations. NCCB agents are also allowed to inspect, with or without notice, any building or premises operated by a cannabis establishment within 72 hours after the NCCB is notified that the cannabis establishment is operating without a license for the cannabis establishment.
If, after an investigation, the NCCB finds sufficient grounds to establish a violation of NCCB regulations, a Complaint will be issued. The Complaint must contain: The date of the alleged violation or, if the date is unknown, the date that the violation was identified; the address or description of the location where the violation occurred; the section of the NCCR and Title 56 of NRS that was violated and a description of the violation; the amount of the civil penalty that the NCCB may impose; and a description of the payment process, including a description of the time within which and the place to which any civil penalty must be paid if the respondent does not wish to dispute the complaint.
CATEGORIES OF VIOLATIONS:
The Regulations of the NCCB identify five different categories of violations. Each category provides for a different level of civil penalties that may be imposed by the NCCB, 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 range from fines between $5,000 and $90,000, with suspensions of licenses for as little as 7 days to complete revocation.
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.