Panel reviews S.323 to shift hemp oversight to Cannabis Control Board, add product fees and penalties

A legislative panel reviewed Senate Bill S.323 on May 8, focusing on transferring hemp oversight to the Cannabis Control Board, new product registration fees, and criminal and civil penalties for unregistered hemp and cannabis products.

Legislative counsel Bradley Showman told members the bill relocates hemp regulatory authority from the Agency of Agriculture to the Cannabis Control Board, gives that board permissive rulemaking authority to define hemp and cannabis and to exempt low-risk "craft processors," and allows the board to waive or reduce licensing fees through an "accessible policy" rather than formal rulemaking. "This law will go into effect on 11/01/2026," Showman said, describing a federal timetable that is creating regulatory uncertainty for processors.

Why it matters: supporters said the transfer would create a single regulatory home better positioned to distinguish hemp from cannabis as federal definitions change; critics on the panel pressed for legislative checks on delegating…