Nevada Administrative Code Chapter 453D - Regulation and Taxation of Marijuana
Nevada Administrative Code (NAC) Chapter 453D
Regulation and Taxation of Marijuana
Overview
NAC Chapter 453D governs the legal framework for the regulation, licensing, control, and taxation of marijuana and marijuana-related products in Nevada. This chapter supports the implementation of the Nevada Cannabis Laws which legalized recreational and medical marijuana use under specific conditions.
The rules set out by this chapter ensure public safety, regulate the commercial marijuana industry, and impose taxation in accordance with state law.
Key Provisions of NAC Chapter 453D
1. Licensing of Marijuana Establishments
Types of Licenses:
Cultivation facilities
Product manufacturing facilities
Testing laboratories
Retail marijuana stores
Distributors
Licensing requirements and procedures including application, fees, renewals, and transfers.
Compliance with local jurisdiction approvals.
2. Operational Standards
Requirements for security measures, including surveillance and access control.
Health and safety standards for cultivation, manufacturing, and retail sales.
Packaging and labeling requirements to ensure consumer safety and compliance with state laws (e.g., no misleading labels, child-proof packaging).
Prohibitions on sales to minors and restrictions on advertising.
3. Testing and Quality Control
Mandatory testing of marijuana and marijuana products for potency, contaminants (pesticides, molds, heavy metals).
Use of licensed testing laboratories to ensure product safety and quality.
Reporting and record-keeping requirements for test results.
4. Taxation
Imposition of excise taxes on marijuana products at various stages (cultivation, wholesale, retail).
Procedures for collection and remittance of taxes.
Use of tax revenues for state programs including education, public health, and enforcement.
5. Record Keeping and Reporting
Detailed record keeping by licensees covering inventory, sales, and transfers.
Reporting obligations to state regulatory agencies.
Use of seed-to-sale tracking systems for transparency and preventing diversion.
6. Enforcement and Penalties
Inspections and audits by regulatory authorities.
Grounds for suspension, revocation, or denial of licenses.
Penalties for violations including fines, license suspension, or criminal prosecution.
Purpose of NAC Chapter 453D
To regulate the marijuana industry in a manner that protects public health and safety.
To create a controlled legal market that prevents diversion to illegal markets.
To ensure tax compliance and generate revenue for the state.
To provide clear guidelines for businesses and consumers in the marijuana market.
Summary Table
| Aspect | Details |
|---|---|
| Licensing | Cultivation, manufacturing, testing, retail, distribution |
| Operations | Security, packaging, labeling, sales restrictions |
| Testing | Potency and contaminant testing, licensed labs |
| Taxation | Excise taxes at cultivation, wholesale, retail levels |
| Record Keeping | Inventory, sales records, seed-to-sale tracking |
| Enforcement | Inspections, penalties, license suspension/revocation |
Conclusion
NAC Chapter 453D provides a comprehensive framework for the legal, regulated, and taxed marijuana market in Nevada. The regulations balance industry growth with public health and safety concerns, ensuring transparency and accountability.
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