Assembly Judiciary hears bill to curb deceptive hemp shops that mimic cannabis dispensaries

The Assembly Judiciary Committee heard Assembly Bill 504, introduced by Assemblymember Joe Dalia, which would make certain deceptive trade practices unlawful for businesses that sell or offer to sell hemp products and that present themselves as licensed cannabis dispensaries.

Supporters told the committee the bill targets establishments along the Las Vegas Strip and Fremont Street that they say intentionally mimic licensed dispensaries and lure tourists and other customers to buy untested hemp products. Assemblymember Joe Dalia said the measure is intended to "protect consumers, our tourism industry, and our licensed cannabis dispensaries." He described shops that display hemp leaves, sell hemp buds that “appear and smell indistinguishable from cannabis,” or use aggressive staff to suggest customers can buy intoxicating cannabis there.

The bill, as presented, would require signage at affected locations indicating the site "does not hold a cannabis establishment license," prohibit false advertising about the nature of the location or the products, and designate those practices as deceptive trade practices under NRS 598.0903 to 598.0999. Two amendments were offered during the hearing: one tightened the bill's definitions and examples of deceptive practices; a second delegated the precise signage language, dimensions and color-contrast specifications to the applicable regulatory body.

James Humm, identified in testimony as executive director of the Cannabis Compliance Board, described enforcement as primarily routed through Nevada's consumer-protection framework and said the board has worked with local licensing departments and would partner with the attorney general's office when complaints are received. Humm told the committee enforcement would "actually come through the Bureau of Consumer Protection under chapter 598, as written." He also said the Cannabis Compliance Board was neutral on the bill.

Business and industry witnesses testified in support. Drianna Dimatulac, representing Deep Roots Harvest, said "Nevadans deserve full transparency when it comes to the products that they purchase and consume." Lake Martin of the Nevada Cannabis Association called "fake dispensaries a huge problem," saying they sell either non-intoxicating hemp packaged to look like cannabis flower or potent, untested hemp-derived THC products. Representatives of Planet 13 and other regulated dispensaries urged the committee to pass AB 504 to protect public health and market integrity.

During questioning members asked how signage would look and who would enforce the rule. Assemblymember LaRue Hatch asked whether the shops would still be allowed to display hemp leaves; Dalia replied that the bill intentionally leaves precise signage standards to the regulatory body so it can set clear, legible language and visual standards. Assemblymember Cole asked whether the state would run an awareness campaign; enforcement and outreach were discussed as a partnership between the Cannabis Compliance Board, local licensing, and the attorney general's consumer-protection investigators.

Witnesses and the sponsor said the bill is narrowly aimed at establishments that misrepresent intoxicating products and sell untested items that can contain synthetic compounds or contaminants. Supporters repeatedly contrasted hemp (less than 0.3% delta-9 THC, as described in testimony) with regulated cannabis (often 15–20% THC) to explain the difference consumers should expect.

The committee took testimony in support, heard no opposition, and heard no callers on the phone lines. The sponsor waived final remarks and the chair closed the hearing on AB 504 without a committee vote. The sponsor and industry witnesses said they will work with the Cannabis Compliance Board and the attorney general's office on final signage language and any drafting adjustments.