SB356 - Revises provisions relating to hemp. (BDR 56-916)

S.B. 356 - *SB356* SENATE BILL NO. 356–SENATOR ROGICH MARCH 17, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to hemp. (BDR 56-916) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to hemp; setting forth certain requirements and restrictions concerning consumable hemp products; revising the powers and duties of the Cannabis Compliance Board to include certain powers and duties relating to consumable hemp products; revising provisions governing the maximum THC concentration for hemp; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law creates the Cannabis Compliance Board to license and regulate 1 persons and establishments involved in the cannabis industry in this State. (Title 56 2 of NRS) Sections 3, 4, 6, 7 and 9 of this bill require the Board to take certain 3 actions relating to the regulation of consumable hemp products. Section 2 of this 4 bill defines “consumable hemp product” to mean hemp, a commodity or product 5 containing hemp or a commodity or product purporting to contain cannabidiol that: 6 (1) has a THC concentration that does not exceed the maximum THC concentration 7 for hemp; and (2) is intended for human consumption. Section 2 excludes from the 8 definition of “consumable hemp product” a commodity or product that contains 9 only an approved hemp component and no other hemp. 10 Section 3 prohibits a person from manufacturing, storing, distributing, 11 advertising, marketing, selling or offering to sell a consumable hemp product in this 12 State with a THC concentration that exceeds the limit of detection, which section 3 13 defines to mean the lowest concentration of THC that can be reliably detected using 14 a method of testing established by the Board by regulation. Section 3 additionally: 15 (1) prohibits a person from selling or offering to sell a consumable hemp product 16 with a THC concentration that does not exceed the limit of detection to a person 17 who is under 21 years of age; and (2) requires such a product to be sold in a single 18 package that meets certain requirements. Section 3 also requires a person who 19 manufactures a consumable hemp product to maintain and provide to the Board 20 upon request a certificate of analysis issued by a cannabis independent testing 21 – 2 – - *SB356* laboratory indicating that the consumable hemp product contains a THC 22 concentration that does not exceed the limit of detection. 23 Section 3 requires the Board to adopt certain regulations governing consumable 24 hemp products, which must: (1) establish requirements relating to testing and 25 serving sizes of such products; (2) establish requirements and restrictions for the 26 marketing and advertising of such products; and (3) provide for the investigation of 27 violations of the provisions of section 3 and for the imposition of penalties against 28 persons who commit such violations. 29 Existing law authorizes the Board to seize and destroy cannabis and cannabis 30 products involved in unlicensed cannabis activities in accordance with the 31 procedures set forth in existing law governing seizure and forfeiture. (NRS 32 678A.440) Sections 3, 6 and 11 of this bill similarly authorize the Board to seize 33 and destroy consumable hemp products that violate the provisions of section 3 in 34 accordance with such procedures. Section 6 additionally authorizes the Board to 35 commit resources and take certain actions to address violations of section 3. 36 Section 4 creates an account in the State General Fund which is administered 37 by the Board to carry out the purposes of section 3. Section 5 of this bill makes a 38 conforming change so that the definition of a consumable hemp product set forth in 39 section 2 applies to the provisions of existing law governing the cannabis industry. 40 Section 7 provides for the testing of consumable hemp products by a cannabis 41 independent testing laboratory. Sections 8 and 10 of this bill revise existing 42 provisions setting forth certain authorizations and requirements for cannabis 43 establishments which engage in certain activities relating to hemp to specify that 44 the requirements and restrictions relating to consumable hemp products set forth in 45 section 3 apply to a cannabis establishment. 46 Existing law prohibits a person from selling or offering to sell any commodity 47 or product containing hemp which is intended for human consumption or any other 48 commodity or product that purports to contain cannabidiol with a THC 49 concentration that does not exceed the maximum THC concentration established by 50 federal law for hemp unless the commodity or product has been tested and is 51 labeled in accordance with requirements established by the Department of Health 52 and Human Services. (NRS 439.532) Section 12 of this bill specifies that such 53 requirements: (1) are in addition to the requirements set forth in section 3; and (2) 54 do not apply to a cannabis establishment. 55 Existing law requires the State Department of Agriculture to establish the 56 maximum THC concentration for hemp. (NRS 557.160, 557.260) Sections 14 and 57 16 of this bill: (1) remove the authority of the Department to establish the 58 maximum THC concentration for hemp; and (2) revise the definition of “hemp” to 59 require hemp to have a THC concentration that does not exceed 0.3 percent on a 60 dry weight basis, as measured using post-decarboxylation or another similarly 61 reliable testing method. Sections 13, 15, 17 and 18 of this bill make conforming 62 changes to revise other references in existing law to the maximum THC 63 concentration of hemp. 64 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 678A of NRS is hereby amended by 1 adding thereto the provisions set forth as sections 2, 3 and 4 of this 2 act. 3 Sec. 2. 1. “Consumable hemp product” means hemp, as 4 defined in NRS 557.160, a commodity or product containing hemp 5 – 3 – - *SB356* or any other commodity or product that purports to contain 1 cannabidiol that: 2 (a) Has a THC concentration that does not exceed the 3 maximum THC concentration set forth in NRS 557.160 for hemp; 4 and 5 (b) Is intended for human consumption by ingestion or 6 inhalation or for topical application to the skin or hair of a 7 human. 8 2. The term does not include a commodity or product that 9 contains only an approved hemp component, as defined in NRS 10 446.844, and no other hemp. 11 Sec. 3. 1. A person shall not manufacture, store, distribute, 12 advertise, market, sell or offer to sell a consumable hemp product 13 in this State with a THC concentration that exceeds the limit of 14 detection. 15 2. A person shall not sell or offer to sell a consumable hemp 16 product with a THC concentration that does not exceed the limit 17 of detection to a person who is under 21 years of age. 18 3. A consumable hemp product must be sold in a single 19 package that contains: 20 (a) A THC concentration that does not exceed the limit of 21 detection; and 22 (b) Not more than five servings of a size established by the 23 Board by regulation. 24 4. A person who manufactures a consumable hemp product 25 shall maintain and provide to the Board upon request a certificate 26 of analysis issued by a cannabis independent testing laboratory 27 indicating that the consumable hemp product contains a THC 28 concentration that does not exceed the limit of detection. 29 5. A person engaged in the sale of consumable hemp 30 products shall comply with all requirements and restrictions 31 established by the Board relating to the marketing and advertising 32 of consumable hemp products. 33 6. A consumable hemp product that exceeds the limit of 34 detection in violation of the provisions of this section is subject to 35 forfeiture pursuant to NRS 179.1156 to 179.121, inclusive. 36 7. The Board shall adopt regulations governing consumable 37 hemp products. Such regulations must: 38 (a) Establish the method of testing consumable hemp products 39 that is required to be used by a cannabis independent testing 40 laboratory; 41 (b) Establish serving sizes for consumable hemp products; 42 (c) Establish reasonable requirements for and restrictions on 43 the marketing and advertising of consumable hemp products; and 44 – 4 – - *SB356* (d) Provide for the investigation of violations of the provisions 1 of this section and for the imposition of penalties against persons 2 who commit such violations, including, without limitation, 3 regulations that: 4 (1) Establish penalties to be imposed for violations of the 5 provisions of this section, which may include, without limitation, 6 the issuance of a cease and desist order or citation and the 7 imposition of an administrative fine, a civil penalty and other 8 similar penalties; 9 (2) Set forth the procedures by which the Board may 10 impose a penalty against a person for committing a violation of 11 the provisions of this section; and 12 (3) Set forth the circumstances under which the Board is 13 required to refer matters concerning a violation of the provisions 14 of this section to an appropriate state or local law enforcement 15 agency. 16 8. As used in this section, “limit of detection” means the 17 lowest concentration of THC that can be reliably detected using a 18 method of testing established by the Board by regulation. 19 Sec. 4. 1. All money collected by the Board pursuant to 20 section 3 of this act as fines or penalties must be deposited in the 21 State Treasury and accounted for separately in the State General 22 Fund. The money in the account: 23 (a) May only be used by the Board for carrying out the 24 purposes of section 3 of this act; 25 (b) Does not revert to the State General Fund at the end of any 26 fiscal year; and 27 (c) Must be carried forward to the next fiscal year. 28 2. The Board shall administer the account. Any interest and 29 income earned on the money in the account, after deducting any 30 applicable charges, must be credited to the account. 31 3. All claims against the account must be paid as other claims 32 against the State are paid. 33 Sec. 5. NRS 678A.010 is hereby amended to read as follows: 34 678A.010 As used in this title, unless the context otherwise 35 requires, the words and terms defined in NRS 678A.020 to 36 678A.240, inclusive, and section 2 of this act have the meanings 37 ascribed to them in those sections. 38 Sec. 6. NRS 678A.440 is hereby amended to read as follows: 39 678A.440 In addition to any other powers granted by this title, 40 the Board has the power to: 41 1. Enter into interlocal agreements pursuant to NRS 277.080 to 42 277.180, inclusive. 43 – 5 – - *SB356* 2. Establish and amend a plan of organization for the Board, 1 including, without limitation, organizations of divisions or sections 2 with leaders for such divisions or sections. 3 3. Appear on its own behalf before governmental agencies of 4 the State or any of its political subdivisions. 5 4. Apply for and accept any gift, donation, bequest, grant or 6 other source of money to carry out the provisions of this title. 7 5. Execute all instruments necessary or convenient for carrying 8 out the provisions of this title. 9 6. Prepare, publish and distribute such studies, reports, 10 bulletins and other materials as the Board deems appropriate. 11 7. Refer cases to the Attorney General for criminal prosecution. 12 8. Maintain an official Internet website for the Board. 13 9. Monitor federal activity regarding cannabis and report its 14 findings to the Legislature. 15 10. Employ the services of such persons the Board considers 16 necessary for the purposes of hearing disciplinary proceedings. 17 11. In accordance with NRS 179.1156 to 179.121, inclusive, 18 seize and destroy cannabis and cannabis products involved in 19 unlicensed cannabis activities. 20 12. In accordance with NRS 179.1156 to 179.121, inclusive, 21 seize and destroy consumable hemp products that violate the 22 provisions of section 3 of this act. 23 13. Commit resources and take action to address unlicensed 24 cannabis activities, including, without limitation: 25 (a) Investigating and referring matters involving unlicensed 26 cannabis activities to the appropriate state or local law enforcement 27 agency, including, without limitation, the Investigation Division of 28 the Department of Public Safety and the Attorney General, for 29 further investigation and possible criminal prosecution; 30 (b) Educating the public through various types of media and 31 communication and other forms of public outreach on the dangers 32 and illegality of unlicensed cannabis activities and the importance of 33 having cannabis establishments which are licensed and regulated; 34 (c) Creating a system through which the public, licensees and 35 registrants may file confidential reports of unlicensed cannabis 36 activities; and 37 (d) Imposing penalties against persons who engage in 38 unlicensed cannabis activities in accordance with the regulations 39 adopted by the Board pursuant to NRS 678A.450. 40 14. Commit resources and take action to address violations of 41 section 3 of this act, including, without limitation: 42 (a) Investigating and referring matters involving a violation of 43 section 3 of this act to the appropriate state or local law 44 enforcement agency, including, without limitation, the 45 – 6 – - *SB356* Investigation Division of the Department of Public Safety and the 1 Attorney General, for further investigation and possible criminal 2 prosecution; and 3 (b) Imposing penalties against persons who commit violations 4 of section 3 of this act in accordance with the regulations adopted 5 by the Board pursuant to section 3 of this act. 6 Sec. 7. NRS 678B.290 is hereby amended to read as follows: 7 678B.290 1. The Board shall establish standards for and 8 certify one or more cannabis independent testing laboratories to: 9 (a) Test cannabis for adult use and adult-use cannabis products 10 that are to be sold in this State; 11 (b) Test [Text truncated for display. Full text available on LegiScan.]