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.
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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
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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
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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
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(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
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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
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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 cannabis for medical use and medical cannabis products 12
that are to be sold in this State; and 13
(c) In addition to the testing described in paragraph (a) or (b), 14
test consumable hemp products and other commodities or products 15
containing hemp, as defined in NRS 557.160, or cannabidiol which 16
are intended for human or animal consumption and sold by a 17
cannabis establishment , [or] a person described in NRS 446.844 [.] 18
or another person. 19
2. Such a cannabis independent testing laboratory must be able 20
to: 21
(a) Determine accurately, with respect to cannabis or cannabis 22
products that are sold or will be sold at cannabis sales facilities in 23
this State: 24
(1) The concentration therein of THC and cannabidiol. 25
(2) The presence and identification of microbes, molds and 26
fungi. 27
(3) The composition of the tested material. 28
(4) The presence of chemicals in the tested material, 29
including, without limitation, pesticides, heavy metals, herbicides or 30
growth regulators. 31
(b) Demonstrate the validity and accuracy of the methods used 32
by the cannabis independent testing laboratory to test cannabis and 33
cannabis products. 34
3. To obtain a license to operate a cannabis independent testing 35
laboratory, an applicant must: 36
(a) Apply successfully as required pursuant to NRS 678B.210 or 37
678B.250, as applicable. 38
(b) Pay the fees required pursuant to NRS 678B.390. 39
(c) Agree to become accredited pursuant to standard ISO/IEC 40
17025 of the International Organization for Standardization within 1 41
year after licensure by an impartial organization that operates in 42
accordance with standard ISO/IEC 17011 of the International 43
Organization for Standardization and is a signatory to the Mutual 44
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Recognition Arrangement of the International Laboratory 1
Accreditation Cooperation. 2
Sec. 8. NRS 678B.520 is hereby amended to read as follows: 3
678B.520 1. Each cannabis establishment shall, in 4
consultation with the Board, cooperate to ensure that all cannabis 5
products offered for sale: 6
(a) Are labeled clearly and unambiguously: 7
(1) As cannabis with the words “THIS PRODUCT 8
CONTAINS CANNABIS” in bold type; and 9
(2) As required by the provisions of this chapter and chapters 10
678C and 678D of NRS. 11
(b) Are not presented in packaging that contains an image of a 12
cartoon character, mascot, action figure, balloon or toy, except that 13
such an item may appear in the logo of the cannabis production 14
facility which produced the product. 15
(c) Are regulated and sold on the basis of the concentration of 16
THC in the products and not by weight. 17
(d) Are packaged and labeled in such a manner as to allow 18
tracking by way of an inventory control system. 19
(e) Are not packaged and labeled in a manner which is modeled 20
after a brand of products primarily consumed by or marketed to 21
children. 22
(f) Are labeled in a manner which indicates the amount of THC 23
in the product, measured in milligrams, and includes a statement 24
that the product contains cannabis and its potency was tested with an 25
allowable variance of the amount determined by the Board by 26
regulation. 27
(g) Are not labeled or marketed as candy. 28
(h) Are labeled with: 29
(1) The words “Keep out of reach of children”; 30
(2) A list of all ingredients used in the cannabis product; 31
(3) A list of all major food allergens in the cannabis product; 32
and 33
(4) Any other information the Board may require by 34
regulation. 35
2. A cannabis production facility shall not produce cannabis 36
products in any form that: 37
(a) Is or appears to be a lollipop. 38
(b) Bears the likeness or contains characteristics of a real or 39
fictional person, animal or fruit, including, without limitation, a 40
caricature, cartoon or artistic rendering. 41
(c) Is modeled after a brand of products primarily consumed by 42
or marketed to children. 43
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(d) Is made by applying concentrated cannabis, as defined in 1
NRS 453.042, to a commercially available candy or snack food item 2
other than dried fruit, nuts or granola. 3
3. A cannabis production facility shall: 4
(a) Seal any cannabis product that consists of cookies or 5
brownies in a bag or other container which is not transparent. 6
(b) Maintain a hand washing area with hot water, soap and 7
disposable towels which is located away from any area in which 8
cannabis products are cooked or otherwise prepared. 9
(c) Require each person who handles cannabis products to 10
restrain his or her hair, wear clean clothing and keep his or her 11
fingernails neatly trimmed. 12
(d) Package all cannabis products produced by the cannabis 13
production facility on the premises of the cannabis production 14
facility. 15
4. A cannabis establishment shall not engage in advertising that 16
in any way makes cannabis or cannabis products appeal to children, 17
including, without limitation, advertising which uses an image of a 18
cartoon character, mascot, action figure, balloon, fruit or toy. 19
5. Each cannabis sales facility shall offer for sale containers for 20
the storage of cannabis and cannabis products which lock and are 21
designed to prohibit children from unlocking and opening the 22
container. 23
6. A cannabis sales facility shall: 24
(a) Convey to each purchaser of cannabis or cannabis products 25
the following information in a manner prescribed by the Board: 26
(1) To keep cannabis and cannabis products out of the reach 27
of children; 28
(2) That cannabis products can cause severe illness in 29
children; 30
(3) That allowing children to ingest cannabis or cannabis 31
products or storing cannabis or cannabis products in a location 32
which is accessible to children may result in an investigation by an 33
agency which provides child welfare services or criminal 34
prosecution for child abuse or neglect; 35
(4) That the intoxicating effects of edible cannabis products 36
may be delayed by 2 hours or more and users of edible cannabis 37
products should initially ingest a small amount of the product, then 38
wait at least 120 minutes before ingesting any additional amount of 39
the product; 40
(5) That pregnant women should consult with a physician 41
before ingesting cannabis or cannabis products; 42
(6) That ingesting cannabis or cannabis products with 43
alcohol or other drugs, including prescription medication, may result 44
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in unpredictable levels of impairment and that a person should 1
consult with a physician before doing so; 2
(7) That cannabis or cannabis products can impair 3
concentration, coordination and judgment and a person should not 4
operate a motor vehicle while under the influence of cannabis or 5
cannabis products; and 6
(8) That ingestion of any amount of cannabis or cannabis 7
products before driving may result in criminal prosecution for 8
driving under the influence. 9
(b) Enclose all cannabis and cannabis products in opaque, child-10
resistant packaging upon sale. 11
7. A cannabis sales facility shall allow any person who is at 12
least 21 years of age to enter the premises of the cannabis sales 13
facility. 14
8. If the health authority, as defined in NRS 446.050, where a 15
cannabis production facility, cannabis sales facility or cannabis 16
consumption lounge which sells edible cannabis products is located 17
requires persons who handle food at a food establishment to obtain 18
certification, the cannabis production facility, cannabis sales facility 19
or cannabis consumption lounge shall ensure that at least one 20
employee maintains such certification. 21
9. A cannabis production facility may , subject to the 22
provisions of section 3 of this act, sell a consumable hemp product 23
or other commodity or product made using hemp, as defined in 24
NRS 557.160, or containing cannabidiol to a cannabis sales facility. 25
10. In addition to any other product authorized by the 26
provisions of this title, a cannabis sales facility may , subject to the 27
provisions of section 3 of this act, sell: 28
(a) [Any] A consumable hemp product or any other commodity 29
or product made using hemp, as defined in NRS 557.160; 30
(b) Any commodity or product containing cannabidiol with a 31
THC concentration of not more than 0.3 percent; and 32
(c) Any other product specified by regulation of the Board. 33
11. A cannabis establishment: 34
(a) Shall not engage in advertising which contains any statement 35
or illustration that: 36
(1) Is false or misleading; 37
(2) Promotes overconsumption of cannabis or cannabis 38
products; 39
(3) Depicts the actual consumption of cannabis or cannabis 40
products; or 41
(4) Depicts a child or other person who is less than 21 years 42
of age consuming cannabis or cannabis products or objects 43
suggesting the presence of a child, including, without limitation, 44
toys, characters or cartoons, or contains any other depiction which is 45
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designed in any manner to be appealing to or encourage 1
consumption of cannabis or cannabis products by a person who is 2
less than 21 years of age. 3
(b) Shall not advertise in any publication or on radio, television 4
or any other medium if 30 percent or more of the audience of that 5
medium is reasonably expected to be persons who are less than 21 6
years of age. 7
(c) Shall not place an advertisement: 8
(1) Within 1,000 feet of a public or private school, 9
playground, public park or library, but may maintain such an 10
advertisement if it was initially placed before the school, 11
playground, public park or library was located within 1,000 feet of 12
the location of the advertisement; 13
(2) On or inside of a motor vehicle used for public 14
transportation or any shelter for public transportation; 15
(3) At a sports event to which persons who are less than 21 16
years of age are allowed entry; or 17
(4) At an entertainment event if it is reasonably estimated 18
that 30 percent or more of the persons who will attend that event are 19
less than 21 years of age. 20
(d) Shall not advertise or offer any cannabis or cannabis product 21
as “free” or “donated” without a purchase. 22
(e) Shall ensure that all advertising by the cannabis 23
establishment contains such warnings as may be prescribed by the 24
Board, which must include, without limitation, the following words: 25
(1) “Keep out of reach of children”; and 26
(2) “For use only by adults 21 years of age and older.” 27
(f) Shall ensure that all advertising by the cannabis 28
establishment contains: 29
(1) The name of the cannabis establishment; and 30
(2) Except as otherwise provided in subsection 12, the adult-31
use cannabis establishment license number or medical cannabis 32
establishment license number of the cannabis establishment or any 33
other unique identifier assigned to the cannabis establishment by the 34
Board. 35
12. A cannabis establishment that holds more than one license 36
may satisfy the requirement set forth in subparagraph (2) of 37
paragraph (f) of subsection 11 if the cannabis establishment includes 38
in all advertising conducted by the cannabis establishment: 39
(a) Any one of the adult-use cannabis establishment license 40
numbers or medical cannabis establishment license numbers of the 41
cannabis establishment; or 42
(b) Any one unique identifier assigned to the cannabis 43
establishment by the Board. 44
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13. Nothing in subsection 11 shall be construed to prohibit a 1
local government, pursuant to chapter 244, 268 or 278 of NRS, from 2
adopting an ordinance for the regulation of advertising relating to 3
cannabis which is more restrictive than the provisions of subsection 4
11 relating to: 5
(a) The number, location and size of signs, including, without 6
limitation, any signs carried or displayed by a natural person; 7
(b) Handbills, pamphlets, cards or other types of advertisements 8
that are distributed, excluding an advertisement placed in a 9
newspaper of general circulation, trade publication or other form of 10
print media; 11
(c) Any stationary or moving display that is located on or near 12
the premises of a cannabis establishment; and 13
(d) The content of any advertisement used by a cannabis 14
establishment if the ordinance sets forth specific prohibited content 15
for such an advertisement. 16
14. If a cannabis establishment engages in advertising for 17
which it is required to determine the percentage of persons who are 18
less than 21 years of age and who may reasonably be expected to 19
view or hear the advertisement, the cannabis establishment shall 20
maintain documentation for not less than 5 years after the date on 21
which the advertisement is first broadcasted, published or otherwise 22
displayed that demonstrates the manner in which the cannabis 23
establishment determined the reasonably expected age of the 24
audience for that advertisement. 25
15. To the extent that they are inconsistent or otherwise 26
conflict with the regulations adopted by the Board pursuant to NRS 27
678D.480, the requirements of this section pertaining to cannabis 28
products do not apply to ready-to-consume cannabis products 29
prepared and sold by a cannabis consumption lounge. 30
16. In addition to any other penalties provided for by law, the 31
Board may impose a civil penalty upon a cannabis establishment 32
that violates the provisions of subsection 11 or 14 as follows: 33
(a) For the first violation in the immediately preceding 2 years, a 34
civil penalty not to exceed $1,250. 35
(b) For the second violation in the immediately preceding 2 36
years, a civil penalty not to exceed $2,500. 37
(c) For the third violation in the immediately preceding 2 years, 38
a civil penalty not to exceed $5,000. 39
(d) For the fourth violation in the immediately preceding 2 40
years, a civil penalty not to exceed $10,000. 41
17. As used in this section, “motor vehicle used for public 42
transportation” does not include a taxicab, as defined in 43
NRS 706.124. 44
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Sec. 9. NRS 678B.650 is hereby amended to read as follows: 1
678B.650 The Board shall adopt such regulations as it 2
determines to be necessary or advisable to carry out the provisions 3
of this chapter. Such regulations are in addition to any requirements 4
set forth in statute and must, without limitation: 5
1. Prescribe the form and any additional required content of 6
applications for licenses or registration cards issued pursuant to this 7
chapter; 8
2. Establish procedures for the suspension or revocation of a 9
license or registration card or other disciplinary action to be taken 10
against a licensee or registrant; 11
3. Set forth rules pertaining to the safe and healthful operation 12
of cannabis establishments, including, without limitation: 13
(a) The manner of protecting against diversion and theft without 14
imposing an undue burden on cannabis establishments or 15
compromising the confidentiality of consumers and holders of 16
registry identification cards and letters of approval, as those terms 17
are defined in NRS 678C.080 and 678C.070, respectively; 18
(b) Minimum requirements for the oversight of cannabis 19
establishments; 20
(c) Minimum requirements for the keeping of records by 21
cannabis establishments; 22
(d) Provisions for the security of cannabis establishments, 23
including, without limitation, requirements for the protection by a 24
fully operational security alarm system of each cannabis 25
establishment; and 26
(e) Procedures pursuant to which cannabis establishments must 27
use the services of cannabis independent testing laboratories to 28
ensure that any cannabis or cannabis product , consumable hemp 29
product or other commodity or product made from hemp, as defined 30
in NRS 557.160, sold by a cannabis sales facility to an end user is 31
tested for content, quality and potency in accordance with standards 32
established by the Board; 33
4. Establish circumstances and procedures pursuant to which 34
the maximum fees set forth in NRS 678B.390 may be reduced over 35
time to ensure that the fees imposed pursuant to NRS 678B.390 are, 36
insofar as may be practicable, revenue neutral; 37
5. Establish different categories of cannabis establishment 38
agent registration cards, including, without limitation, criteria for 39
issuance of a cannabis establishment agent registration card for a 40
cannabis executive and a cannabis establishment agent registration 41
card for a cannabis receiver and criteria for training and 42
certification, for each of the different types of cannabis 43
establishments at which such an agent may be employed or 44
volunteer or provide labor as a cannabis establishment agent; 45
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6. As far as possible while maintaining accountability, protect 1
the identity and personal identifying information of each person who 2
receives, facilitates or delivers services in accordance with this 3
chapter; 4
7. Establish procedures and requirements to enable a dual 5
licensee to operate a medical cannabis establishment and an adult-6
use cannabis establishment at the same location; 7
8. Determine whether any provision of this chapter or chapter 8
678C or 678D of NRS would make the operation of a cannabis 9
establishment by a dual licensee unreasonably impracticable; 10
9. Allow for any record relating to the delivery of cannabis or 11
cannabis products that is required to be kept by a cannabis 12
establishment to be created and maintained in an electronic format; 13
10. Prescribe the manner in which the Board will determine 14
whether a person who holds an adult-use cannabis establishment 15
license is ineligible to hold additional licenses pursuant to NRS 16
678B.325 and 678B.328; 17
11. Set forth rules pertaining to the safe and healthful operation 18
of cannabis consumption lounges, including, without limitation: 19
(a) Standards for the air quality in a cannabis consumption 20
lounge; 21
(b) Procedures and requirements for the collection and disposal 22
of cannabis and cannabis products which are left at a cannabis 23
consumption lounge; and 24
(c) Requirements for the training of employees of a cannabis 25
consumption lounge in the sale and safe consumption of single-use 26
cannabis products and ready-to-consume cannabis products; and 27
12. Address such other matters as the Board deems necessary 28
to carry out the provisions of this title. 29
Sec. 10. NRS 678C.410 is hereby amended to read as follows: 30
678C.410 1. A medical cannabis establishment is prohibited 31
from acquiring, possessing, cultivating, manufacturing, delivering, 32
transferring, transporting, supplying or dispensing cannabis for any 33
purpose except to: 34
(a) Directly or indirectly assist patients who possess valid 35
registry identification cards; 36
(b) Assist patients who possess valid registry identification cards 37
or letters of approval by way of those patients’ designated primary 38
caregivers; and 39
(c) Return for a refund cannabis, medical edible cannabis 40
products or medical cannabis-infused products to the medical 41
cannabis establishment from which the cannabis, medical edible 42
cannabis products or medical cannabis-infused products were 43
acquired. 44
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For the purposes of this subsection, a person shall be deemed to 1
be a patient who possesses a valid registry identification card or 2
letter of approval if he or she qualifies for nonresident reciprocity 3
pursuant to NRS 678C.470. 4
2. A medical cannabis dispensary and a medical cultivation 5
facility may acquire usable cannabis or cannabis plants from a 6
person who holds a valid registry identification card, including, 7
without limitation, a designated primary caregiver. Except as 8
otherwise provided in this subsection, the patient or caregiver, as 9
applicable, must receive no compensation for the cannabis. A 10
patient who holds a valid registry identification card, and the 11
designated primary caregiver of such a patient, or the designated 12
primary caregiver of a person who holds a letter of approval may 13
sell usable cannabis to a medical cannabis dispensary one time and 14
may sell cannabis plants to a cultivation facility one time. 15
3. A medical cannabis production facility and a medical 16
cannabis dispensary may acquire hemp, as defined in NRS 557.160, 17
or a commodity or product made using such hemp from a grower or 18
handler registered by the State Department of Agriculture pursuant 19
to chapter 557 of NRS. A medical cannabis production facility may 20
use hemp or a commodity or product made using such hemp to 21
manufacture medical cannabis products. A medical cannabis 22
dispensary may , subject to the provisions of section 3 of this act, 23
dispense hemp or a commodity or product made using such hemp 24
and medical edible cannabis products and medical cannabis-infused 25
products manufactured using hemp or a commodity or product made 26
using such hemp. 27
4. A dual licensee: 28
(a) Shall comply with the regulations adopted by the Board 29
pursuant to subsection 7 of NRS 678B.650 with respect to the 30
medical cannabis establishment operated by the dual licensee; and 31
(b) May, to the extent authorized by such regulations, combine 32
the location or operations of the medical cannabis establishment 33
operated by the dual licensee with the adult-use cannabis 34
establishment operated by the dual licensee. 35
5. If a medical cannabis establishment is operated by a dual 36
licensee, any provision of this section which is determined by the 37
Board to be unreasonably impracticable pursuant to subsection 8 of 38
NRS 678B.650 does not apply to the medical cannabis 39
establishment. 40
Sec. 11. NRS 179.1164 is hereby amended to read as follows: 41
179.1164 1. Except as otherwise provided in subsection 2, 42
the following property is subject to seizure and forfeiture in a 43
proceeding for forfeiture: 44
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(a) Any proceeds attributable to the commission or attempted 1
commission of any felony. 2
(b) Any property or proceeds otherwise subject to forfeiture 3
pursuant to NRS 179.121, 200.760, 202.257, 370.419, 453.301 or 4
501.3857 [.] or section 3 of this act. 5
2. Property may not, to the extent of the interest of any 6
claimant, be declared forfeited by reason of an act or omission 7
shown to have been committed or omitted without the knowledge, 8
consent or willful blindness of the claimant. 9
3. Unless the owner of real property or a mobile home: 10
(a) Has given the tenant notice to surrender the premises 11
pursuant to NRS 40.254 within 90 days after the owner receives 12
notice of a conviction pursuant to subsection 2 of NRS 453.305; or 13
(b) Shows the court that the owner had good cause not to evict 14
the tenant summarily pursuant to NRS 40.254, 15
the owner of real property or a mobile home used or intended for 16
use by a tenant to facilitate any violation of the provisions of NRS 17
453.011 to 453.552, inclusive, except NRS 453.336, is disputably 18
presumed to have known of and consented to that use if the notices 19
required by NRS 453.305 have been given in connection with 20
another such violation relating to the property or mobile home. The 21
holder of a lien or encumbrance on the property or mobile home is 22
disputably presumed to have acquired an interest in the property for 23
fair value and without knowledge or consent to such use, regardless 24
of when the act giving rise to the forfeiture occurred. 25
Sec. 12. NRS 439.532 is hereby amended to read as follows: 26
439.532 1. [Unless] In addition to any applicable 27
requirements set forth in section 3 of this act, and unless federal 28
law or regulation otherwise requires, a person shall not sell or offer 29
to sell any consumable hemp product, any other commodity or 30
product containing hemp which is intended for human consumption 31
or any other commodity or product that purports to contain 32
cannabidiol with a THC concentration that does not exceed the 33
maximum THC concentration [established by federal law] set forth 34
in NRS 557.160 for hemp unless such a commodity or product: 35
(a) Has been tested by [an] a cannabis independent testing 36
laboratory and meets the standards established by regulation of the 37
Department pursuant to subsection 3; and 38
(b) Is labeled in accordance with the regulations adopted by the 39
Department pursuant to subsection 3. 40
2. A person who produces or offers for sale a commodity or 41
product described in subsection 1 may submit such a commodity or 42
product to a cannabis independent testing laboratory for testing 43
pursuant to this section and a cannabis independent testing 44
laboratory may perform such testing. 45
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3. The Department shall adopt regulations requiring the testing 1
and labeling of any commodity or product described in subsection 1. 2
Such regulations must: 3
(a) Set forth protocols and procedures for the testing of the 4
commodities and products described in subsection 1; 5
(b) Identify contaminants of the commodities and products 6
described in subsection 1 which are foods that contain an approved 7
hemp component, as defined in NRS 446.844, and prescribe 8
tolerances for such contaminants; and 9
(c) Require that any commodity or product described in 10
subsection 1 is labeled in a manner that is not false or misleading in 11
accordance with the applicable provisions of chapters 446 and 585 12
of NRS. 13
4. The provisions of this section do not apply to a cannabis 14
establishment, as defined in NRS 678A.095. 15
5. As used in this section: 16
(a) “Cannabis independent testing laboratory” has the meaning 17
ascribed to it in NRS 678A.115. 18
(b) “Consumable hemp product” has the meaning ascribed to 19
it in section 2 of this act. 20
(c) “Food” has the meaning ascribed to it in NRS 446.017. 21
[(c)] (d) “Hemp” has the meaning ascribed to it in 22
NRS 557.160. 23
[(d)] (e) “Intended for human consumption” means intended for 24
ingestion or inhalation by a human or for topical application to the 25
skin or hair of a human. 26
[(e)] (f) “THC” has the meaning ascribed to it in NRS 453.139. 27
Sec. 13. NRS 453.096 is hereby amended to read as follows: 28
453.096 1. “Marijuana” means: 29
(a) All parts of any plant of the genus Cannabis, whether 30
growing or not; 31
(b) The resin extracted from any part of the plant, including 32
concentrated cannabis; 33
(c) Every compound, manufacture, salt, derivative, mixture or 34
preparation of the plant, or its resin; 35
(d) Any commodity or product made using hemp which exceeds 36
the maximum THC concentration [established by the State 37
Department of Agriculture] set forth in NRS 557.160 for hemp; and 38
(e) Any product or commodity made from hemp which is 39
manufactured or sold by a cannabis establishment which violates 40
any regulation adopted by the Cannabis Compliance Board pursuant 41
to paragraph (g) of subsection 1 of NRS 678A.450 relating to THC 42
concentration. 43
2. “Marijuana” does not include: 44
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(a) Hemp, as defined in NRS 557.160, which is grown or 1
cultivated pursuant to the provisions of chapter 557 of NRS; 2
(b) The mature stalks of the plant and root balls which have 3
been fully separated from the stalks of the plant after harvest, fiber 4
produced from the stalks, seeds of the plant, oil or cake made from 5
the seeds of the plant, any other compound, manufacture, salt, 6
derivative, mixture or preparation of the mature stalks (except the 7
resin extracted therefrom), fiber, oil or cake; or 8
(c) Any commodity or product made using hemp, as defined in 9
NRS 557.160, which does not exceed the maximum THC 10
concentration [established by the State Department of Agriculture] 11
set forth in NRS 557.160 for hemp. 12
Sec. 14. NRS 557.160 is hereby amended to read as follows: 13
557.160 1. “Hemp” means any plant of the genus Cannabis 14
sativa L. and any part of such a plant, including, without limitation, 15
the seeds thereof and all derivatives, extracts, cannabinoids, 16
isomers, acids, salts and salts of isomers, whether growing or not, 17
with a THC concentration that does not exceed [the maximum THC 18
concentration established by the Department for hemp.] 0.3 percent 19
on a dry weight basis, as measured using post-decarboxylation or 20
another similarly reliable testing method. 21
2. “Hemp” does not include any commodity or product made 22
using hemp. 23
Sec. 15. NRS 557.240 is hereby amended to read as follows: 24
557.240 1. A grower or handler shall keep and maintain for a 25
period of not less than 3 years such records as the Department may 26
prescribe by regulation and, upon 3 days’ notice, make such records 27
available to the Department for inspection during normal business 28
hours. The Department may inspect records pursuant to this 29
subsection to determine whether a person has complied with the 30
provisions of this chapter, the regulations adopted pursuant thereto 31
and any lawful order of the Department. 32
2. The Department may inspect any growing crop of a grower 33
and take a representative sample for analysis in the field. If the 34
testing of such a sample in the field determines that the crop 35
contains a THC concentration that exceeds the maximum THC 36
concentration [established by the Department] set forth in NRS 37
557.160 for hemp, the grower shall submit a plan for the effective 38
disposal or remediation of the crop to the Department for its 39
approval. 40
3. If a crop has been determined pursuant to subsection 2 to 41
contain a THC concentration that exceeds the maximum THC 42
concentration [established by the Department] set forth in NRS 43
557.160 for hemp, the grower of the crop may elect to perform 44
remediation activities to render the crop compliant. After a grower 45
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performs remediation activities pursuant to a plan for the effective 1
remediation of a crop approved pursuant to subsection 2, an 2
additional inspection, sampling and testing of the crop must be 3
conducted to determine the THC concentration of the crop. 4
4. If a grower fails to submit an approved plan to the 5
Department pursuant to subsection 2 or fails to follow the provisions 6
of such a plan, or if a crop continues to contain a THC concentration 7
that exceeds the maximum THC concentration [established by the 8
Department] set forth in NRS 557.160 for hemp after remediation 9
pursuant to subsection 3, the Department may: 10
(a) Impose any additional requirement it determines necessary 11
upon the grower; 12
(b) Suspend or revoke the registration of the grower; 13
(c) Impose an administrative fine pursuant to NRS 557.280 on 14
the grower; 15
(d) Report the grower to the appropriate local law enforcement 16
agency for investigation of a violation of the provisions of chapter 17
453 of NRS; or 18
(e) Detain, seize or embargo the crop. 19
5. If the Department determines that the land or crop 20
management practices of a grower, handler or producer are 21
inadequate, inconsistent with the information concerning such 22
practices submitted to the Department pursuant to NRS 557.200 or 23
negatively affect natural resources, the Department may impose an 24
administrative fine pursuant to NRS 557.280. 25
Sec. 16. NRS 557.260 is hereby amended to read as follows: 26
557.260 1. The Department may adopt regulations necessary 27
to: 28
(a) Establish quality standards and requirements for the 29
packaging and labeling of agricultural hemp seed; 30
(b) Provide for the certification and registration of sites used for 31
growing, producing or handling hemp; and 32
(c) Comply with any requirement imposed by the United States 33
Department of Agriculture, including, without limitation, any 34
requirement related to reporting information regarding growers, 35
handlers and producers. 36
2. [The Department shall adopt regulations establishing the 37
maximum THC concentration for hemp. 38
3.] A producer shall comply with: 39
(a) Any regulation adopted by the Department pursuant to 40
subsection 1 ; [or 2;] and 41
(b) The provisions of NRS 587.015 to 587.123, inclusive, and 42
any regulations adopted pursuant thereto. 43
[4.] 3. Any agricultural hemp seed which is obtained by a 44
grower and was produced: 45
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(a) In this State must be produced by a producer; and 1
(b) In another state must be produced by a person who is 2
registered and approved to produce and sell agricultural hemp seed 3
pursuant to the laws of that state. 4
[5.] 4. The Department shall provide adequate information to 5
growers to identify producers from which a grower may purchase 6
agricultural hemp seed. 7
[6.] 5. A handler may only obtain hemp from a grower and 8
agricultural hemp seed for cleaning and future propagation from a 9
producer. 10
Sec. 17. NRS 557.270 is hereby amended to read as follows: 11
557.270 1. A grower, handler or producer may submit hemp 12
or a commodity or product made using hemp, other than a 13
commodity or product described in subsection 1 of NRS 439.532, to 14
a cannabis independent testing laboratory for testing pursuant to this 15
section and a cannabis independent testing laboratory may perform 16
such testing. 17
2. Before the harvest of any crop, the Department shall collect 18
a sample of the crop. A grower or producer must harvest a crop in a 19
timely manner after the collection of such a sample and within the 20
period of time prescribed in the regulations promulgated by the 21
Secretary of Agriculture of the United States pursuant to 7 U.S.C. § 22
1639r. A grower or producer who does not harvest a crop within that 23
period of time shall not harvest the crop before the Department has 24
collected a new sample of the crop. 25
3. The Department or a cannabis independent testing laboratory 26
approved by the Department shall test each sample collected 27
pursuant to subsection 2 to determine whether the crop has a THC 28
concentration that exceeds the maximum THC concentration 29
[established by the Department] set forth in NRS 557.160 for hemp. 30
The Department may adopt regulations relating to such testing 31
which include, without limitation: 32
(a) Protocols and procedures for the testing of a crop, including, 33
without limitation, determining appropriate standards for sampling 34
and for the size of batches for testing; and 35
(b) A requirement that a cannabis independent testing laboratory 36
provide the results of the testing directly to the Department in a 37
manner prescribed by the Department. 38
4. When the Department has obtained the results of the testing 39
required by subsection 3, the Department shall issue to the grower 40
or producer of the crop a report of the results of the testing which 41
must include, without limitation, the THC concentration of the crop. 42
5. A crop which is harvested before a sample has been 43
collected by the Department pursuant to subsection 2 shall be 44
deemed to have failed the testing required by subsection 3 and may 45
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be detained, seized or embargoed by the Department. The 1
Department shall not renew the registration of a grower or producer 2
who harvests a crop before a sample has been collected by the 3
Department pursuant to subsection 2. 4
6. Except as otherwise provided in subsection 5 and by federal 5
law, a grower or producer whose crop fails a test prescribed by the 6
Department pursuant to this section may request that the Department 7
collect a new sample of that same crop for retesting. The 8
Department shall adopt regulations establishing protocols and 9
procedures for such retesting. 10
7. As used in this section, “cannabis independent testing 11
laboratory” has the meaning ascribed to it in NRS 678A.115. 12
Sec. 18. NRS 638.135 is hereby amended to read as follows: 13
638.135 1. A licensed veterinarian may: 14
(a) Administer to an animal a product containing hemp or CBD 15
if the product: 16
(1) Has a THC concentration of not more than [0.3 percent 17
on a dry weight basis;] the maximum THC concentration set forth 18
in NRS 557.160 for hemp; and 19
(2) Is intended for use or consumption through means other 20
than inhalation to treat a condition of the animal; and 21
(b) Recommend to the owner of an animal the use of such a 22
product to treat a condition of the animal. 23
2. The Board shall not take any disciplinary action against a 24
licensed veterinarian or the facility in which the licensed 25
veterinarian engages in the practice of veterinary medicine solely for 26
administering or recommending the use of products pursuant to 27
subsection 1. 28
3. As used in this section: 29
(a) “Administer” has the meaning ascribed to it in NRS 453.021. 30
(b) “CBD” has the meaning ascribed to it in NRS 453.033. 31
(c) “Hemp” has the meaning ascribed to it in NRS 557.160. 32
(d) “THC” has the meaning ascribed to it in NRS 453.139. 33
H