SB 114 — Authorizes food that contains certain components of hemp to be produced or sold at certain food establishments under certain circumstances. (BDR 49-65)

(ReprintedSenate withBill amendmentsNo. adopted on April 19, 2021) FIRST REPRINT S.B.

114114–Senators SENATEGoicoechea, BILLNSettelmeyer; O .

114–SENATORSand GOICOECHEAHansen ,CHAPTER.......... SETTELMEYER ;AND H ANSEN FEBRUARY 11, 2021 ____________ Referred to Committee on Natural Resources SUMMARY—Authorizes food that contains certain components of hemp to be produced or sold at certain food establishments under certain circumstances.

(BDR 49-65) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law imposes various requirements on the growing and handling of hemp, the production of agricultural hemp seed and the sale of commodities and products that contain hemp.

(Chapter of NRS) Under existing law, the term “food establishment” is broadly defined to mean any place, structure, premises, vehicle or vessel in which food isefinedis manufactured, prepared, sold, offered or displayed for sale or served.

Thus, under existing law, the definition of “food establishment” would include, in general, establishments at which food is prepared or served for immediate consumption, suchserved asfor restaurants,immediate asconsumption, wellsuch as establishmentsfacilities atthat whichmanufacture food is not prepared or process food.

(NRS 446.020) This bill revises various provisions of existing law concerning -hemp *SB114_R1*and –the 2operation –of food establishments at which food is not prepared or served for immediate consumption for the purpose of authorizing food that contains an approved hemp component to be produced or sold at such a food establishment under certain circumstances.

Existing law requires a person who wishes to operate a food establishment to obtain a permit issued by a health authority and comply with certain requirements governing the operation of a food establishment.

(Chapter 446 of NRS) Section 3 authorizes a person who holds such a permit and who operates a food establishment at which food is not prepared or served for immediate consumption to:

and (3) subject to certain testing and labeling requirements set forth by the Department of Health and Human Services, sell, offer or display for sale food that contains an approved hemp component.

Section 6 of this bill makes a conforming change to reflect the authorization for a food establishment at which food is not prepared or served for immediate consumption to sell food that contains an Existingapproved law requires a person who wishes to grow hemp, handle hemp forcomponent. processing into commodities or products or produce agricultural hemp seed to register with the State Department of Agriculture and comply with certain other requirements.

(ChapterExisting 557law ofrequires NRS) Section 1 of this bill exempts from these requirements a person described in section 3 who purchaseswishes orto handlesgrow hemphemp, orhandle a commodity or product made using hemp for theprocessing purposeinto ofcommodities engagingor inproducts theor activitiesproduce relatedagricultural to hemp describedseed into that- section,81st ifSession the(2021) person– reasonably2 believes– theregister hempwith orthe commodityState orDepartment productof madeAgriculture usingand hempcomply was grown or processed in compliance with suchcertain other requirements.

product(Chapter containing557 hempof thatNRS) isSection intended1 forof humanthis consumptionbill orexempts certainfrom otherthese orrequirements commoditiesa orperson productsdescribed thatin purportsection to3 containwho cannabidiolpurchases unlessor thehandles hemp or a commodity or product hasmade beenusing testedhemp andfor labeledthe purpose of engaging in accordancethe withthe requirementshemp establishedor bycommodity theor Departmentproduct ofmade Healthusing andhemp Humanwas Services.grown or processed inably believes compliance with such requirements.

(NRSExisting 439.532)law Sectionprohibits 2a ofperson thisfrom selling or offering to sell a commodity or product containing hemp that is intended for human consumption or certain other commodities or products that purport to contain cannabidiol unless the commodity or product has been tested and labeled in accordance with requirements established bill requires the Department to adopt regulations that identify contaminants of commodities or products which are foods that contain an approved hemp component and prescribe tolerances for such contaminants.

(NRS 585.300-585.330) Under existing law, a person is prohibited from manufacturing, selling or delivering, holding or offering for sale any food that take certain actions against a food establishment if the health authority determines or has probable cause to believe that any food of the food establishment is adulterated.

(NRS 585.520).

Existing law also authorizes a health authority tothat take certain actions against a food establishment if the health authority determines or has probable cause to believe that any food of the food establishment is adulterated.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

- *SB114_R1* – 3 – 1.

Sec.- 81st Session (2021) – 3 – 439.532 1.NRS 4Unless federal law or regulation otherwises:

2.requires, a person shall not sell or offer 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 such a commodity or product:

NRS 439.532 is hereby amended to read as follows:

439.532 1.

Unless federal law or regulation otherwise requires, a person shall not sell or offer 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 such a commodity or product:

A person who produces or offers for sale a commodity or product described in subsection 1 may submit such a commodity or product to a cannabis independent testing laboratory for testing pursuant to this section and a cannabis independent testing laboratorylab3. may perform such testing.

3.

- *SB114_R1* – 4 – 4.

(a) “Cannabis independent testing laboratory” has the meaning asc(b) “Food” has the meaning ascribed to it in NRS 678A.115.446.017.

(b) “Food” has the meaning ascribed to it in NRS 446.017.

- 81st Session (2021) – 4 – Sec.

A person who holds a permit issued pursuant to NRS 446.875 and who operates a food establishment at which food is notnot(a) preparedPurchase hemp or serveda forcommodity immediateor consumptionproduct may:made using hemp from a grower or handler registered by the State Department of Agriculture pursuant to chapter 557 of NRS.

(a) Purchase hemp or a commodity or product made using hemp from a grower or handler registered by the State Department of Agriculture pursuant to chapter 557 of NRS.