Existing law creates the Cannabis Compliance Board to license and regulate persons and establishments involved in the cannabis industry in this State. (Title 56 of NRS) Sections 3, 4, 6, 7 and 9 of this bill require the Board to take certain actions relating to the regulation of consumable hemp products. Section 2 of this bill defines “consumable hemp product” to mean hemp, a commodity or product containing hemp or a commodity or product purporting to contain cannabidiol that: (1) has a THC concentration that does not exceed the maximum THC concentration for hemp; and (2) is intended for human consumption. Section 2 excludes from the definition of “consumable hemp product” a commodity or product that contains only an approved hemp component and no other hemp. Section 3 prohibits a person from manufacturing, storing, distributing, advertising, marketing, selling or offering to sell a consumable hemp product in this State with a THC concentration that exceeds the limit of detection, which section 3 defines to mean the lowest concentration of THC that can be reliably detected using a method of testing established by the Board by regulation. Section 3 additionally: (1) prohibits a person from selling or offering to sell a consumable hemp product with a THC concentration that does not exceed the limit of detection to a person who is under 21 years of age; and (2) requires such a product to be sold in a single package that meets certain requirements. Section 3 also requires a person who manufactures a consumable hemp product to maintain and provide to the Board upon request a certificate of analysis issued by a cannabis independent testing laboratory indicating that the consumable hemp product contains a THC concentration that does not exceed the limit of detection. Section 3 requires the Board to adopt certain regulations governing consumable hemp products, which must: (1) establish requirements relating to testing and serving sizes of such products; (2) establish requirements and restrictions for the marketing and advertising of such products; and (3) provide for the investigation of violations of the provisions of section 3 and for the imposition of penalties against persons who commit such violations. Existing law authorizes the Board to seize and destroy cannabis and cannabis products involved in unlicensed cannabis activities in accordance with the procedures set forth in existing law governing seizure and forfeiture. (NRS 678A.440) Sections 3, 6 and 11 of this bill similarly authorize the Board to seize and destroy consumable hemp products that violate the provisions of section 3 in accordance with such procedures. Section 6 additionally authorizes the Board to commit resources and take certain actions to address violations of section 3. Section 4 creates an account in the State General Fund which is administered by the Board to carry out the purposes of section 3. Section 5 of this bill makes a conforming change so that the definition of a consumable hemp product set forth in section 2 applies to the provisions of existing law governing the cannabis industry. Section 7 provides for the testing of consumable hemp products by a cannabis independent testing laboratory. Sections 8 and 10 of this bill revise existing provisions setting forth certain authorizations and requirements for cannabis establishments which engage in certain activities relating to hemp to specify that the requirements and restrictions relating to consumable hemp products set forth in section 3 apply to a cannabis establishment. Existing law prohibits a person from selling or offering to sell any commodity or product containing hemp which is intended for human consumption or any other commodity or product that purports to contain cannabidiol with a THC concentration that does not exceed the maximum THC concentration established by federal law for hemp unless the commodity or product has been tested and is labeled in accordance with requirements established by the Department of Health and Human Services. (NRS 439.532) Section 12 of this bill specifies that such requirements: (1) are in addition to the requirements set forth in section 3; and (2) do not apply to a cannabis establishment. Existing law requires the State Department of Agriculture to establish the maximum THC concentration for hemp. (NRS 557.160, 557.260) Sections 14 and 16 of this bill: (1) remove the authority of the Department to establish the maximum THC concentration for hemp; and (2) revise the definition of “hemp” to require hemp to have a THC concentration that does not exceed 0.3 percent on a dry weight basis, as measured using post-decarboxylation or another similarly reliable testing method. Sections 13, 15, 17 and 18 of this bill make conforming changes to revise other references in existing law to the maximum THC concentration of hemp.

Statutes affected:
As Introduced: 678A.010, 678A.440, 678B.290, 678B.520, 678B.650, 678C.410, 179.1164, 439.532, 453.096, 557.160, 557.240, 557.260, 557.270, 638.135
BDR: 678A.010, 678A.440, 678B.290, 678B.520, 678B.650, 678C.410, 179.1164, 439.532, 453.096, 557.160, 557.240, 557.260, 557.270, 638.135