The Senate Committee on Commerce and Labor convened on May 31, 2025, to discuss Assembly Bill 504, which addresses deceptive trade practices in the cannabis industry, particularly concerning hemp products. Assembly member Joe Dalia presented the bill on behalf of Speaker Yeager, highlighting the need for consumer protection in the rapidly evolving cannabis market.

Dalia emphasized that since 2019, a 1,500-foot setback has been in place around gaming and resort areas, prohibiting cannabis dispensaries from operating in those zones. However, he noted that some unscrupulous businesses have exploited this regulation by opening hemp shops that mislead consumers into believing they are purchasing legitimate cannabis products. This issue is particularly prevalent in high-traffic areas such as the Las Vegas Strip and Fremont Street.

The assembly member described how these shops create a deceptive atmosphere, mimicking dispensaries by displaying hemp leaves and selling products that closely resemble cannabis. These include hemp buds, gummies, and cartridges, often packaged with enticing imagery that suggests a pleasurable experience. Dalia warned that these products are not only unlikely to deliver the expected effects but may also pose health risks, as they often lack safety testing and could contain harmful substances like synthetic marijuana or pesticides.

The committee's discussions underscored the importance of regulating these practices to protect consumers and maintain the integrity of Nevada's cannabis industry. The meeting concluded with a commitment to further evaluate the implications of Assembly Bill 504 and its potential impact on both consumer safety and the tourism sector.