REGULATIONS OF THE

1 I REGULATIONS OF THE NEVADA CANNABIS COMPLIANCE BOARD Las Vegas, Nevada Adopted by the Cannabis Compliance Board on July 21, 2020 Effective as of August 5, 2020 TABLE OF CONTENTS REGULATION 1 ISSUANCE OF REGULATIONS ; CONSTRUCTION; DEFINITIONS Title. 1 Promulgation, amendment, modification and repeal. 1 Construction. 1 Severability. 1 Definitions. 1 Act defined. 1 Analyte defined. 1 Analytical portion defined. 1 Applicant defined. 1 Application defined. 1 Batch defined. 2 Batch number defined. 2 Board Agent defined.

2 2 CBD defined. 2 Chief Medical Officer defined. 2 Combined cannabis establishment defined. 2 Component cannabis establishment defined. 2 Excise tax on cannabis defined. 2 Extraction defined. 2 Fair market value defined. 2 Foreign matter defined. 2 ii Growing unit defined. 2 Imminent health hazard defined. 2 Label defined. 3 Letter of approval defined. 3 Lot defined. 3 Multiple-serving edible cannabis product defined. 3 Packaging defined. 3 Person defined. 3 Pesticide defined.

3 3 Physician defined. 3 Potential total THC defined. 3 Potentially hazardous cannabis products and ingredients defined. 3 Premises defined. 4 Private Residence defined. 4 Production run defined. 4 Production run number defined. 4 Proficiency testing defined. 4 Proficiency testing program defined. 4 Proficiency testing provider defined. 4 Proficiency testing sample defined. 5 Public transportation defined. 5 Sample protocols defined. 5 Security equipment defined. 5 Seed-to-sale tracking system defined.

4 5 Separate operations defined. 5 Single-serving edible cannabis product defined. 5 Surveillance defined. 5 Taxpayer defined. 5 Vending Machine defined. 5 Cannabis interpreted to exclude industrial hemp. 5 Immature cannabis plant and mature cannabis plant interpreted. 5 iii REGULATION 2 CANNABIS COMPLIANCE BOARD: ORGANIZATION AND ADMINISTRATION Definitions. 6 Delegation to Chair. 6 Board meetings. 6 Appearances. 7 Recessed meetings. 7 Service of notices in general. 7 Subpoenas. 7 Employee records. 8 Procedure for control of evidence.

5 8 Other employees of Board: Employment and discharge; conditions and limitations regarding hearing officers. 8 REGULATION 3 CANNABIS ADVISORY COMMISSION: ORGANIZATION AND ADMINISTRATION Definitions. 8 Delegation to Commission Chair. 8 Commission meetings. 8 REGULATION 4 DISCIPLINARY AND OTHER PROCEEDINGS BEFORE THE BOARD Applicability. 9 Grounds for disciplinary action. 9 Imposition of civil penalty; revocation or suspension of license or cannabis establishment agent registration card; corrective action. 9 Category I Violations.

6 9 Category II Violations. 10 Category III Violations. 11 Category IV Violations. 12 Category V Violations. 13 Imminent health hazard. 14 Complaint. 14 iv Service of complaint. 14 Prohibition of ex parte communications. 15 Delegation to Chair. 15 Appearance through counsel. 15 Early case conference and hearing. 15 Reinstatement of license or cannabis establishment agent registration card: Application; conditions, limitations or restrictions upon reinstatement; denial. 16 Grounds for summary suspension; notice; request for hearing.

7 17 Discovery: mandatory exchanges. 17 Continuances and recesses. 18 Burden and standard of proof. The Board has the burden of proof, and the standard of proof is a preponderance of the evidence as defined in NRS 18 Motions. 19 Subpoenas. 19 Disposition of charges: Adjudication by Board. 19 Declaratory orders and advisory opinions. 20 Adoption, amendment or repeal of a regulation. 21 REGULATION 5 LICENSING, BACKGROUND CHECKS, AND REGISTRATION CARDS Application process. 22 Designation of persons responsible for providing information, signing documents and ensuring certain actions are taken.

8 22 Qualifications for licensure. 23 Request for applications to operate establishment: Notice by Board; required provisions; time period for submission of applications . 24 Submission of application by person who holds medical cannabis establishment registration certificate for cannabis establishment of same type; issuance of license; refund of fee if application not approved. 24 v Submission of application by person who holds medical cannabis establishment registration license for cannabis establishment of same type or different type; submission of application by person in response to request for applications .

9 24 Request by the board of county commissioners of the county to increase percentage of total number of medical cannabis dispensaries. 24 Licensing of cannabis establishments: Criteria of merit; relative weight. 25 Ranking of applications for retail cannabis store; proportional allocation of licenses for retail cannabis stores within each county; notification to locality of acceptance of applicants; prevention of monopolistic practices; revision or disqualification of application for criminal history of applicant or other person named in application.

10 25 Request by applicant for ranked application score; request to review scoring information; designation of Board employee to respond to request; maintenance of information in application file. 25 Issuance of license if Board receives only one application in response to request for applications ; notification to locality. 25 Issuance of license is conditional until certain requirements for approval to begin operations are satisfied. 25 Written notice of denial of application. 25 Inspections. 25 Authority of Board and Executive Director relating to inspections and investigations, summoning of witnesses and issuance of subpoenas, administration of oaths and administration of provisions of chapter.