Committee advances AB504 to curb misleading 'hemp dispensary' storefronts near tourist corridors
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Summary
AB504 would make certain misleading representations by hemp retailers deceptive trade practices, require clarifying signage and give the Cannabis Compliance Board investigatory authority with enforcement referrals to the Attorney General. Sponsors said the measure protects tourists and consumers from untested intoxicating hemp products sold as
Assemblymember Joe Dalia presented Assembly Bill 504 on May 31, a bill aimed at preventing deceptive trade practices by retail hemp operations that market intoxicating or potently concentrated hemp products near Nevada tourist corridors. Dalia said some hemp shops intentionally mimic licensed cannabis dispensaries—displaying hemp leaves, selling bud‑like hemp flower, cartridges and edibles—and that concentrated hemp products or mislabeled items can contain high levels of THC or untested synthetic ingredients, posing consumer‑safety and tourism‑reputation risks.
Proponents from the licensed cannabis industry said the measure is a narrow consumer‑protection step. Chelsea Caporo of the Nevada Cannabis Association said the 2018 federal farm bill defined hemp under a 0.3% THC dry‑weight threshold, which can be misleading when products are concentrated; AB504 requires signage clarifying that an establishment is not a cannabis dispensary and that products do not contain intoxicating THC levels. Industry witnesses including licensed retailers told the committee the bill will help direct customers to tested, licensed cannabis and reduce consumer harms.
The Cannabis Compliance Board and the Attorney General’s Office testified they were neutral and able to enforce the bill within existing consumer‑protection frameworks; the reprint assigns the CCB investigatory responsibilities with referrals to the Attorney General for fines and enforcement. No organized opposition testified in the hearing record. The committee voted to do pass AB504 by voice vote.
Why it matters: Supporters said the bill protects tourists and residents from misleading stores selling concentrated or untested hemp items that can cause intoxication or health risk; it also clarifies enforcement roles between the CCB and the Attorney General.
What’s next: The committee recorded a motion to do pass AB504; the bill will move to the Senate floor for further consideration.