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- 83rd Session (2025)
Assembly Bill No. 504–Committee on Judiciary
CHAPTER..........
AN ACT relating to deceptive trade practices; requiring a person
who does not hold a cannabis establishment license and who
sells or offe rs to sell certain hemp products to display signs
containing certain information; prohibiting such a person
from making certain false, misleading or deceptive
statements in advertising; making it a deceptive trade practice
to violate those requirements or prohibitions; authorizing the
Cannabis Compliance Board to investigate and refer
violations of those requirements or prohibitions to the
Attorney General; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law defines activities that constitute deceptive trade practices and
provides for the imposition of civil and criminal penalties against persons who
engage in deceptive trade practices. (Chapter 598 of NRS) Section 1 of this bill
requires a person who does not hold a cannabis establishment license and who sells
or offers to sell a hemp product which is intended for human consumption to
display at all times at the location at which the sale or offer is made certain signs
notifying customers that the location is not licensed to sell cannabis and that all
hemp products contain less than the legal limit of THC. Section 1 additionally
prohibits such a person from advertising or permitting to be advertised in any
manner any false, misleading or deceptive statement or representation with regard
to: (1) whether the person holds a cannabis establishment license or the location at
which the sale or offer is made is the premises of a cannabis establishment; or (2)
the nature of any hemp product which is intended for human c onsumption that is
sold or offered for sale by the person. Under section 1 , any violation of the
requirements or prohibitions set forth in this bill constitutes a deceptive trade
practice.
Section 2 of this bill grants the Cannabis Compliance Board the po wer to
investigate and refer violations of section 1 to the Attorney General for the
imposition of any applicable civil and criminal penalties.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
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
adding thereto a new section to read as follows:
1. A person who does not hold a license and who sells or
offers to sell a hemp product which is intended for human
consumption:
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- 83rd Session (2025)
(a) Shall prominently display at all times in a conspicuous
place at the location at which the sale or offer is made , a sign at
each:
(1) Entrance used by a customer which states “THIS
LOCATION IS NOT LICENSED TO SELL CANNABIS.” Each
sign displayed pursuant to this subparagraph must use letters not
less than 1 inch hi gh and must be adequately illuminated to be
visible from a distance of 30 feet from the sign by a person whose
visual acuity is 20/20.
(2) Station where sales are made which states “ALL HEMP
PRODUCTS CONTAIN LESS THAN THE LEGAL LIMIT OF
THC.” Each sign displayed pursuant to this subparagraph must
use letters not less than three -eighths of an inch high, in non -
italicized type, and be displayed at a height of not less than 3 feet
and not more than 7 feet.
(b) Shall not advertise or permit to be advertised in any
manner any false, misleading or deceptive statement or
representation with regard to:
(1) Whether the person holds a license or the location at
which the sale or offer is ma de is the premises of a cannabis
establishment; or
(2) The nature of any hemp product which is intended for
human consumption that is sold or offered for sale by the person ,
including, without limitation, any claim that the hemp product is
cannabis or that the hemp product produces an intoxicating effect.
2. The remedies, penalties, duties and prohibitions set forth in
this section are not exclusive and are in addition to any other
remedies, penalties, duties and prohibitions provided by law.
3. Any v iolation of this section constitutes a deceptive trade
practice for the purposes of NRS 598.0903 to 598.0999, inclusive.
4. As used in this section:
(a) “Approved hemp component” has the meaning ascribed to
it in NRS 446.844.
(b) “Hemp” has the meaning ascribed to it in NRS 557.160.
(c) “Hemp product” means a commodity or product containing
hemp or any other commodity or product that purports to contain
cannabidiol. The term does not include a commodity or product
that contains only an approved hemp co mponent and no other
hemp.
(d) “Intended for human consumption” has the meaning
ascribed to it in NRS 439.532.
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Sec. 2. NRS 678A.440 is hereby amended to read as follows:
678A.440 In addition to any other powers granted b y this title,
the Board has the power to:
1. Enter into interlocal agreements pursuant to NRS 277.080 to
277.180, inclusive.
2. Establish and amend a plan of organization for the Board,
including, without limitation, organizations of divisions or sections
with leaders for such divisions or sections.
3. Appear on its own behalf before governmental agencies of
the State or any of its political subdivisions.
4. Apply for and accept any gift, donation, bequest, grant or
other source of money to carry out the provisions of this title.
5. Execute all instruments necessary or convenient for carrying
out the provisions of this title.
6. Prepare, publish and distribute such studies, reports,
bulletins and other materials as the Board deems appropriate.
7. Refer cases to the Attorney General for criminal prosecution.
8. Maintain an official Internet website for the Board.
9. Monitor federal activity regarding cannabis and report its
findings to the Legislature.
10. Employ the services of such p ersons the Board considers
necessary for the purposes of hearing disciplinary proceedings.
11. In accordance with NRS 179.1156 to 179.121, inclusive,
seize and destroy cannabis and cannabis products involved in
unlicensed cannabis activities.
12. Investigate and refer violations of section 1 of this act to
the Attorney General for the imposition of any penalties set forth
in NRS 598.0903 to 598.0999, inclusive.
13. Commit resources and take action to address unlicensed
cannabis activities, including, without limitation:
(a) Investigating and referring matters involving unlicensed
cannabis activities to the appropriate state or local law enforcement
agency, including, without limitation, the Investigation Division of
the Department of Public Safe ty and the Attorney General, for
further investigation and possible criminal prosecution;
(b) Educating the public through various types of media and
communication and other forms of public outreach on the dangers
and illegality of unlicensed cannabis activities and the importance of
having cannabis establishments which are licensed and regulated;
(c) Creating a system through which the public, licensees and
registrants may file confidential reports of unlicensed cannabis
activities; and
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- 83rd Session (2025)
(d) Imposing pen alties against persons who engage in
unlicensed cannabis activities in accordance with the regulations
adopted by the Board pursuant to NRS 678A.450.
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