[Rev. 6/2/2018 8:08:03 PM--2017]

CHAPTER 557 - INDUSTRIAL HEMP

GROWING AND CULTIVATION OF INDUSTRIAL HEMP FOR AGRICULTURAL OR ACADEMIC RESEARCH

NRS 557.010           Definitions.

NRS 557.020           “Agricultural pilot program” defined.

NRS 557.030           “Department” defined.

NRS 557.040           “Industrial hemp” defined.

NRS 557.050           “Institution of higher education” defined.

NRS 557.060           “THC” defined.

NRS 557.070           Growing and cultivation of industrial hemp for certain purposes; certification and registration of site.

NRS 557.080           Regulations.

GROWERS, HANDLERS AND PRODUCERS OF INDUSTRIAL HEMP NOT FOR AGRICULTURAL OR ACADEMIC RESEARCH

NRS 557.100           Definitions.

NRS 557.110           “Agricultural hemp seed” defined.

NRS 557.120           “Crop” defined.

NRS 557.130           “Department” defined.

NRS 557.140           “Grower” defined.

NRS 557.150           “Handler” defined.

NRS 557.160           “Industrial hemp” defined.

NRS 557.170           “Producer” defined.

NRS 557.180           “THC” defined.

NRS 557.190           Applicability.

NRS 557.200           Registration as grower, handler or producer; submission of application; establishment of fees by regulation.

NRS 557.210           Payment of child support: Statement by applicant for registration or renewal of registration; grounds for denial. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 557.220           Suspension of registration for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of registration. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 557.230           Renewal of registration: Additional requirements.

NRS 557.240           Retention of records by grower or handler; inspection of records; inspection and analysis of growing crop; detention, seizure or embargo of crop.

NRS 557.250           Grower to provide description of property on which crop is to be located; authorized methods for production of industrial hemp; retention of hemp seed for certain purposes.

NRS 557.260           Regulations; compliance by producer with certain requirements.

NRS 557.270           Submission of industrial hemp for testing; certain sales of commodity or product by handler prohibited; adoption of regulations establishing protocols and procedures for testing.

NRS 557.280           Authorized actions by Department for certain violations of law, regulations or orders.

NRS 557.290           Criminal penalty for failure to register.

_________

GROWING AND CULTIVATION OF INDUSTRIAL HEMP FOR AGRICULTURAL OR ACADEMIC RESEARCH

      NRS 557.010  Definitions.  As used in NRS 557.010 to 557.080, inclusive, unless the context otherwise requires, the words and terms defined in NRS 557.020 to 557.060, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2015, 1973; A 2017, 1348)

      NRS 557.020  “Agricultural pilot program” defined.  “Agricultural pilot program” means a program to study the growth, cultivation or marketing of industrial hemp.

      (Added to NRS by 2015, 1973)

      NRS 557.030  “Department” defined.  “Department” means the State Department of Agriculture.

      (Added to NRS by 2015, 1973)

      NRS 557.040  “Industrial hemp” defined.  “Industrial hemp” means the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a THC concentration of not more than 0.3 percent on a dry weight basis.

      (Added to NRS by 2015, 1973)

      NRS 557.050  “Institution of higher education” defined.  “Institution of higher education” means:

      1.  A university, college or community college which is privately owned or which is part of the Nevada System of Higher Education; and

      2.  A postsecondary educational institution, as defined in NRS 394.099, or any other institution of higher education.

      (Added to NRS by 2015, 1974)

      NRS 557.060  “THC” defined.  “THC” has the meaning ascribed to it in NRS 453A.155.

      (Added to NRS by 2015, 1974)

      NRS 557.070  Growing and cultivation of industrial hemp for certain purposes; certification and registration of site.

      1.  An institution of higher education or the Department may grow or cultivate industrial hemp if the industrial hemp is grown or cultivated for:

      (a) Purposes of research conducted under an agricultural pilot program; or

      (b) Other agricultural or academic research.

      2.  Each site used for growing or cultivating industrial hemp in this State must be certified by and registered with the Department before growing or cultivating industrial hemp.

      (Added to NRS by 2015, 1974)

      NRS 557.080  Regulations.  The State Board of Agriculture may adopt regulations to carry out the provisions of NRS 557.010 to 557.080, inclusive, including, without limitation, regulations necessary to:

      1.  Establish and carry out an agricultural pilot program;

      2.  Provide for the certification and registration of sites used for growing or cultivating industrial hemp; and

      3.  Restrict or prohibit the use or processing of industrial hemp for the creation, manufacture, sale or use of cannabidiol or any compound, salt, derivative, mixture or preparation of cannabidiol.

      (Added to NRS by 2015, 1974; A 2017, 1348)

GROWERS, HANDLERS AND PRODUCERS OF INDUSTRIAL HEMP NOT FOR AGRICULTURAL OR ACADEMIC RESEARCH

      NRS 557.100  Definitions.  As used in NRS 557.100 to 557.290, inclusive, unless the context otherwise requires, the words and terms defined in NRS 557.110 to 557.180, inclusive, have the meanings ascribed to them in those sections.

      (Add to NRS by 2017, 1343)

      NRS 557.110  “Agricultural hemp seed” defined.  “Agricultural hemp seed” means the seed of any plant of the genus Cannabis that:

      1.  Is sold to or intended to be sold to a grower for planting; or

      2.  Remains in an unprocessed or partially processed condition that is capable of germination.

      (Added to NRS by 2017, 1343)

      NRS 557.120  “Crop” defined.  “Crop” means all industrial hemp grown by a grower.

      (Added to NRS by 2017, 1343)

      NRS 557.130  “Department” defined.  “Department” means the State Department of Agriculture.

      (Added to NRS by 2017, 1344)

      NRS 557.140  “Grower” defined.  “Grower” means a person who is registered by the Department and produces industrial hemp.

      (Added to NRS by 2017, 1344)

      NRS 557.150  “Handler” defined.  “Handler” means a person who is registered by the Department pursuant to NRS 557.100 to 557.290, inclusive, and receives industrial hemp for processing into commodities, products or agricultural hemp seed.

      (Added to NRS by 2017, 1344)

      NRS 557.160  “Industrial hemp” defined.

      1.  “Industrial hemp” means:

      (a) Any plant of the genus Cannabis and any part of such a plant other than a seed, whether growing or not, with a THC concentration of not more than 0.3 percent on a dry weight basis; and

      (b) A seed of any plant of the genus Cannabis that:

             (1) Is part of a crop;

             (2) Is retained by a grower for future planting;

             (3) Is agricultural hemp seed;

             (4) Is intended for processing into or for use as agricultural hemp seed; or

             (5) Has been processed in a manner that renders it incapable of germination.

      2.  “Industrial hemp” does not include any commodity or product made using industrial hemp.

      (Added to NRS by 2017, 1344)

      NRS 557.170  “Producer” defined.  “Producer” means a person who is registered by the Department pursuant to NRS 557.100 to 557.290, inclusive, and produces agricultural hemp seed.

      (Added to NRS by 2017, 1344)

      NRS 557.180  “THC” defined.  “THC” has the meaning ascribed to it in NRS 453A.155.

      (Added to NRS by 2017, 1344)

      NRS 557.190  Applicability.  The provisions of NRS 557.100 to 557.290, inclusive, do not apply to the Department or an institution of higher education which grows or cultivates industrial hemp pursuant to NRS 557.010 to 557.080, inclusive.

      (Added to NRS by 2017, 1344)

      NRS 557.200  Registration as grower, handler or producer; submission of application; establishment of fees by regulation.

      1.  A person shall not grow or handle industrial hemp or produce agricultural hemp seed unless the person is registered with the Department as a grower, handler or producer, as applicable.

      2.  A person who wishes to grow or handle industrial hemp must register with the Department as a grower or handler, as applicable.

      3.  A person who wishes to produce agricultural hemp seed must register with the Department as a producer unless the person is:

      (a) A grower registered pursuant to subsection 2 who retains agricultural hemp seed solely pursuant to subsection 3 of NRS 557.250; or

      (b) A grower or handler registered pursuant to subsection 2 who processes seeds of any plant of the genus Cannabis which are incapable of germination into commodities or products.

Ê A person may not register as a producer unless the person is also registered as a grower or handler.

      4.  A person who wishes to register with the Department as a grower, handler or producer must submit to the Department the fee established pursuant to subsection 7 and an application, on a form prescribed by the Department, which includes:

      (a) The name and address of the applicant;

      (b) The name and address of the applicant’s business in which industrial hemp or agricultural hemp seed will be grown, handled or produced, if different than that of the applicant; and

      (c) Such other information as the Department may require by regulation.

      5.  Registration as a grower, handler or producer expires on December 31 of each year and may be renewed upon submission of an application for renewal containing such information as the Department may require by regulation.

      6.  Registration as a grower, handler or producer is not transferable. If a grower, handler or producer changes its business name or the ownership of the grower, handler or producer changes, the grower, handler or producer must obtain a new registration pursuant to NRS 557.100 to 557.290, inclusive.

      7.  The Department shall establish by regulation fees for the issuance and renewal of registration as a grower, handler or producer in an amount necessary to cover the costs of carrying out NRS 557.100 to 557.290, inclusive.

      (Added to NRS by 2017, 1344)

      NRS 557.210  Payment of child support: Statement by applicant for registration or renewal of registration; grounds for denial. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

      1.  In addition to any other requirements set forth in NRS 557.100 to 557.290, inclusive, an applicant for registration or the renewal of a registration as a grower, handler or producer shall:

      (a) Include the social security number of the applicant in the application submitted to the Department.

      (b) Submit to the Department the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      2.  The Department shall include the statement required pursuant to subsection 1 in:

      (a) The application or any other forms that must be submitted for the issuance or renewal of the registration; or

      (b) A separate form prescribed by the Department.

      3.  Registration as a grower, handler or producer may not be issued or renewed by the Department if the applicant:

      (a) Fails to submit the statement required pursuant to subsection 1; or

      (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

      4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Department shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      (Added to NRS by 2017, 1345)

      NRS 557.220  Suspension of registration for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of registration. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

      1.  If the Department receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is registered as a grower, handler or producer, the Department shall deem the registration issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Department receives a letter issued to the registrant by the district attorney or other public agency pursuant to NRS 425.550 stating that the registrant has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Department shall reinstate the registration of a grower, handler or producer that has been suspended by a district court pursuant to NRS 425.540 if the Department receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose registration was suspended stating that the person whose registration was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      (Added to NRS by 2017, 1345)

      NRS 557.230  Renewal of registration: Additional requirements.

      1.  In addition to any other requirements set forth in NRS 557.100 to 557.290, inclusive, an applicant for the renewal of a registration as a grower, handler or producer must indicate in the application submitted to the Department whether the applicant has a state business license. If the applicant has a state business license, the applicant must include in the application the business identification number assigned by the Secretary of State upon compliance with the provisions of chapter 76 of NRS.

      2.  Registration as a grower, handler or producer may not be renewed by the Department if:

      (a) The applicant fails to submit the information required by subsection 1; or

      (b) The State Controller has informed the Department pursuant to subsection 5 of NRS 353C.1965 that the applicant owes a debt to an agency that has been assigned to the State Controller for collection and the applicant has not:

             (1) Satisfied the debt;

             (2) Entered into an agreement for the payment of the debt pursuant to NRS 353C.130; or

             (3) Demonstrated that the debt is not valid.

      3.  As used in this section:

      (a) “Agency” has the meaning ascribed to it in NRS 353C.020.

      (b) “Debt” has the meaning ascribed to it in NRS 353C.040.

      (Added to NRS by 2017, 1346)

      NRS 557.240  Retention of records by grower or handler; inspection of records; inspection and analysis of growing crop; detention, seizure or embargo of crop.

      1.  A grower or handler shall keep such records as the Department may prescribe by regulation and, upon 3 days’ notice, make such records available to the Department for inspection during normal business hours. The Department may inspect records pursuant to this subsection to determine whether a person has complied with the provisions of NRS 557.100 to 557.290, inclusive, the regulations adopted pursuant thereto and any lawful order of the Department.

      2.  The Department may inspect any growing crop of a grower and take a representative sample for analysis in the field. If the testing of such a sample in the field determines that the crop contains a THC concentration of more than 0.3 percent on a dry weight basis, the Department may detain, seize or embargo the crop.

      (Added to NRS by 2017, 1346)

      NRS 557.250  Grower to provide description of property on which crop is to be located; authorized methods for production of industrial hemp; retention of hemp seed for certain purposes.

      1.  Each grower shall provide the Department with a description of the property on which the crop of the grower is or will be located. Such a description must be in a manner prescribed by the Department and include, without limitation, global positioning system coordinates.

      2.  A grower may use any method for the propagation of industrial hemp to produce industrial hemp, including, without limitation, planting seeds or starts, using clones or cuttings or cultivating industrial hemp in a greenhouse.

      3.  A grower may retain agricultural hemp seed for the purpose of propagating industrial hemp in future years.

      (Added to NRS by 2017, 1346)

      NRS 557.260  Regulations; compliance by producer with certain requirements.

      1.  The Department may adopt regulations establishing quality standards and requirements for the packaging and labeling of agricultural hemp seed.

      2.  A producer shall comply with:

      (a) Any regulation adopted by the Department pursuant to subsection 1; and

      (b) The provisions of NRS 587.015 to 587.123, inclusive, and any regulations adopted pursuant thereto.

      3.  The Department shall provide adequate information to growers to identify producers from which a grower may purchase agricultural hemp seed.

      (Added to NRS by 2017, 1347)

      NRS 557.270  Submission of industrial hemp for testing; certain sales of commodity or product by handler prohibited; adoption of regulations establishing protocols and procedures for testing.

      1.  A grower, handler or producer may submit industrial hemp or a commodity or product made using industrial hemp to an independent testing laboratory for testing pursuant to this section and an independent testing laboratory may perform such testing.

      2.  A handler may not sell a commodity or product made using industrial hemp which is intended for human consumption unless the commodity or product has been submitted to an independent testing laboratory for testing and the independent testing laboratory has confirmed that the commodity or product satisfies the standards established by the Department for the content and quality of industrial hemp.

      3.  The Department shall adopt regulations establishing protocols and procedures for the testing of commodities and products made using industrial hemp, including, without limitation, determining appropriate standards for sampling and for the size of batches for testing.

      4.  The Department may adopt regulations requiring the submission of a sample of a crop of industrial hemp by a grower to an independent testing laboratory to determine whether the crop has a THC concentration of not more than 0.3 percent on a dry weight basis. The regulations may include, without limitation:

      (a) Protocols and procedures for the testing of a crop, including, without limitation, determining appropriate standards for sampling and for the size of batches for testing; and

      (b) A requirement that an independent testing laboratory provide the results of the testing directly to the Department in a manner prescribed by the Department.

      5.  As used in this section:

      (a) “Independent testing laboratory” means a facility certified as an independent testing laboratory pursuant to NRS 453A.368.

      (b) “Intended for human consumption” means intended for ingestion or inhalation by a human or for topical application to the skin or hair of a human.

      (Added to NRS by 2017, 1347)

      NRS 557.280  Authorized actions by Department for certain violations of law, regulations or orders.

      1.  The Department may refuse to issue or renew, suspend or revoke the registration of a grower, handler or producer for a violation of any provision of NRS 557.100 to 557.290, inclusive, the regulations adopted pursuant thereto or any lawful order of the Department.

      2.  In addition to any other penalty provided by law, the Department may impose an administrative fine on any person who violates any of the provisions of NRS 557.100 to 557.290, inclusive, the regulations adopted pursuant thereto or any lawful order of the Department in an amount not to exceed $2,500.

      3.  All fines collected by the Department pursuant to subsection 2 must be deposited with the State Treasurer for credit to the State General Fund.

      (Added to NRS by 2017, 1348)

      NRS 557.290  Criminal penalty for failure to register.  Any person who grows or handles industrial hemp or produces agricultural hemp seed without being registered with the Department pursuant to NRS 557.200 is guilty of a misdemeanor and shall be punished by imprisonment in the county jail for not more than 6 months, or by a fine of not more than $1,000, or by both fine and imprisonment. The prosecuting attorney and the Department may recover the costs of the proceeding, including investigative costs and attorney’s fees, against a person convicted of a misdemeanor pursuant to this section.

      (Added to NRS by 2017, 1348)