{"id":3479,"date":"2017-08-19T07:06:41","date_gmt":"2017-08-19T14:06:41","guid":{"rendered":"http:\/\/www.jeffjaeger.com\/nvapp\/?p=3479"},"modified":"2018-12-15T10:03:22","modified_gmt":"2018-12-15T18:03:22","slug":"is-the-identity-of-a-medical-marijuana-establishment-business-license-holder-confidential","status":"publish","type":"post","link":"https:\/\/www.jeffjaeger.com\/nvapp\/2017\/08\/19\/is-the-identity-of-a-medical-marijuana-establishment-business-license-holder-confidential\/","title":{"rendered":"Is the identity of a medical marijuana establishment business license holder confidential?"},"content":{"rendered":"

\"medical<\/a><\/p>\n

City of Sparks vs. Reno Newspapers, Inc. \u00a0(Nev. Supreme Ct. \u2013 Aug. 3, 2017)<\/strong><\/p>\n

Persons seeking to operate medical marijuana establishments (MMEs) must register with the Department of Health and Human Services\u2019 Division of Public and Behavioral Health (Division), NRS 453A.322(1)<\/a>, and, if located in a jurisdiction so requiring, obtain a business license, NRS 453A.326(3)<\/a>. Reno Newspapers, Inc., which owns and operates the Reno Gazette-Journal (RGJ), a daily newspaper, asked the City of Sparks to disclose copies of the business licenses of persons operating MMEs in the City. In response, the City produced the business licenses, but redacted the licensees\u2019 identities from the documents. The RGJ demanded unredacted copies of the business licenses, and the City denied the subsequent request.<\/p>\n

Thereafter, the RGJ filed a petition for a writ of mandamus in the district court to compel the City to disclose the redacted information. The district court held that the petition was procedurally proper and concluded that the City had a duty under the Nevada Public Records Act to disclose the identities of the business license holders, which duty was not exempted by NAC 453A.714\u2019s<\/a> confidentiality provision, granted the petition. The City appealed.<\/p>\n

<\/p>\n

The Nevada Supreme Court noted<\/a> that generally, the Nevada Public Records Act (NPRA)<\/a> requires disclosure of all public records generated by government entities. The Court also concluded that the plain language of NRS 453A.370(5)<\/a> was sufficiently definite in granting the Division authority to create laws relating to confidentiality, and NAC 453A.714<\/a> was adopted accordingly.<\/p>\n

The City argued that NAC 453A.714<\/a> expressly and unequivocally prohibits disclosure of the identity and identifying information of MME business license holders because (1) the license holders are persons who \u201cdeliver\u201d services under NRS Chapter 453A<\/a>, as that term is statutorily defined; and (2) when NRS 453A.370<\/a> was enacted in 2013, the Nevada Legislature intended to expand the grant of confidentiality beyond the existing medical-marijuana-related confidentiality statutes.<\/p>\n

The Court explained<\/a> that NAC 453A.714(1)<\/a> (2014) prohibits disclosure of \u201cthe name or any other identifying information of any person who facilitates or delivers services pursuant to this chapter or chapter 453A of NRS<\/a>.\u201d The term \u201c[d]elivers\u201d under NRS Chapter 453A<\/a> \u201chas the meaning ascribed to it in NRS 453.051<\/a>\u201d and \u201cmeans the actual, constructive or attempted transfer from one person to another of a controlled substance, whether or not there is an agency relationship.\u201d NRS 453A.060<\/a>. A \u201c[m]edical marijuana establishment\u201d is defined as either: (1) \u201c[a]n independent testing laboratory;\u201d (2) \u201c[a] cultivation facility;\u201d (3) \u201c[a] facility for the production of edible marijuana products or marijuana-infused products;\u201d or (4) \u201c[a] medical marijuana dispensary.\u201d NRS 453A.116<\/a>. Of the four types of MMEs, three of them engage in the act of delivering marijuana as part of their statutory functions, with the exception of \u201ctesting laboratories\u201d under NRS 453A.368<\/a>. Although NRS 453A.368<\/a> does not use the term \u201cdelivers,\u201d the Court indicated that testing laboratories clearly engage in \u201cthe actual, constructive or attempted transfer from one person to another of a controlled substance\u201d to test marijuana. Thus, the Court concluded that all MMEs \u201cdeliver\u201d under NAC 453A.714<\/a> as part of their statutorily prescribed functions.<\/p>\n

The Court further noted<\/a> that the term \u201cconstructive transfer\u201d under NRS 453.051<\/a> incorporates MME business license holders pursuant to the nature of their business activities. Although the term \u201cconstructive transfer\u201d is not defined under NAC Chapter 453A<\/a>, NRS Chapter 453A<\/a>, or Nevada caselaw, Black’s Law Dictionary<\/em> defines a \u201cconstructive transfer\u201d as la] delivery of an item\u2014esp. a controlled substance\u2014by someone other than the owner but at the owner\u2019s direction.\u201d Therefore, the Court determined that an MME business license holder necessarily engages in the act of delivering when instructing the MME on the transfer of controlled substances and, thus, is included under NAC 453A.714’s<\/a> grant of confidentiality for \u201cany person who. . . delivers services.\u201d NAC 453A.714<\/a>.<\/p>\n

The RGJ countered that the term \u201cdelivers\u201d is used in conjunction with the term \u201cservices,\u201d and the exact phrase \u201cdelivers services\u201d is defined in neither NRS Chapter 453A<\/a> nor NAC Chapter 453A<\/a>. However, the Court noted<\/a> that applying a common sense reading of the term \u201cservices\u201d in conjunction with the term \u201cdelivers\u201d as defined under NRS Chapter 453A<\/a>, one can logically infer that \u201cservices\u201d refers to the acts of producing and distributing medical marijuana, which is the title of the subsection governing the statutes to which the regulation applies. See<\/em> NRS 453A.320-.344<\/a>; NAC 453A.300-.720<\/a>. As all MME business license holders are engaged in the acts of producing or distributing medical marijuana, the Court concluded that the term \u201cdelivers\u201d includes the activities of MME business license holders.<\/p>\n

The Court also noted<\/a> that during the enactment of NRS 453A.370<\/a> in 2013, the Nevada Legislature could have referenced or relied on the language of the two existing confidentiality statutes under NRS Chapter 453A<\/a>, but it chose not to do so. See <\/em>D.R. Horton, Inc. v. Eighth Judicial Dist. Court<\/em><\/a>, 125 Nev. 449, 456, 215 P.3d 697, 702 (2009) (\u201cThis court also assumes that, when enacting a statute, the Legislature is aware of related statutes.\u201d). The Court concluded that the Nevada Legislature intended to expand the grant of confidentiality beyond the then-existing medical marijuana-related statutes to include the identifying information of MME business license holders.<\/p>\n

Thus, the Court concluded that (1) NRS 453A.370(5)<\/a> confers on the Division power to withhold identifying information of certain persons; and (2) the identifying information of MME business license holders has been expressly and unequivocally deemed confidential under NAC 453A.714<\/a> and, thus, is exempt from disclosure. Accordingly, the Court reversed the district court\u2019s order granting the RGJ’s writ mandating disclosure.<\/p>\n

Visit the Nevada Appellate Report<\/a> for more legal news.<\/h2>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

City of Sparks vs. Reno Newspapers, Inc. \u00a0(Nev. Supreme Ct. \u2013 Aug. 3, 2017) Persons seeking to operate medical marijuana establishments (MMEs) must register with the Department of Health and Human Services\u2019 Division of Public and Behavioral Health (Division), NRS 453A.322(1), and, if located in a jurisdiction so requiring, obtain a business license, NRS 453A.326(3). […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[250,249,248,234,247,239,235,242,241,243,244,246,237,238,245,240],"class_list":["post-3479","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-cannabis","tag-marijuana","tag-medical-marijuana","tag-nac-453a","tag-nac-453a-300","tag-nac-453a-714","tag-nrs-239","tag-nrs-453-051","tag-nrs-453a","tag-nrs-453a-060","tag-nrs-453a-116","tag-nrs-453a-320","tag-nrs-453a-322","tag-nrs-453a-326","tag-nrs-453a-368","tag-nrs-453a-370"],"yoast_head":"\nIs the identity of a medical marijuana establishment business license holder confidential? - Nevada Appellate Report<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.jeffjaeger.com\/nvapp\/2017\/08\/19\/is-the-identity-of-a-medical-marijuana-establishment-business-license-holder-confidential\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is the identity of a medical marijuana establishment business license holder confidential? - Nevada Appellate Report\" \/>\n<meta property=\"og:description\" content=\"City of Sparks vs. Reno Newspapers, Inc. \u00a0(Nev. Supreme Ct. \u2013 Aug. 3, 2017) Persons seeking to operate medical marijuana establishments (MMEs) must register with the Department of Health and Human Services\u2019 Division of Public and Behavioral Health (Division), NRS 453A.322(1), and, if located in a jurisdiction so requiring, obtain a business license, NRS 453A.326(3). 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