Nevada Administrative Code Chapter 557 - Industrial Hemp
Overview of Nevada Administrative Code Chapter 557 — Industrial Hemp
Purpose and Scope
NAC Chapter 557 regulates the cultivation, processing, transportation, and sale of industrial hemp within Nevada. The regulations implement the state’s compliance with federal laws, primarily the 2018 Farm Bill, which legalized hemp (defined as cannabis with THC concentration not exceeding 0.3%) and set a regulatory framework for states to manage hemp production.
The chapter is administered by the Nevada Department of Agriculture (NDA), which oversees licensing, testing, inspection, and enforcement activities related to industrial hemp.
The primary goals are to promote safe and lawful hemp production, ensure THC limits are met, protect consumers, and prevent hemp from being confused with marijuana (which remains a controlled substance).
Key Provisions of NAC Chapter 557
1. Licensing and Registration
Requires individuals or entities to obtain a hemp grower license from the Nevada Department of Agriculture to cultivate industrial hemp.
Licenses cover cultivation, harvesting, and transporting of hemp.
Application procedures include background checks, site plans, and payment of fees.
2. Cultivation and Growing Standards
Specifies acceptable cultivation practices to ensure hemp quality and compliance with THC limits.
Requires reporting of planting locations and acreage.
Outlines conditions for the destruction of plants exceeding the THC threshold.
3. Testing and THC Compliance
Hemp crops must be tested by an approved laboratory to verify THC content.
Sampling protocols and timing are defined to ensure accurate measurement.
Crops testing above the 0.3% THC threshold are considered marijuana and must be destroyed.
4. Recordkeeping and Reporting
Licensees must maintain records of planting, harvesting, sales, and transport.
Reporting to the Department of Agriculture includes test results and inventories.
5. Transportation and Sale
Establishes rules for transporting hemp within and outside Nevada.
Requires appropriate documentation during transport.
Regulates the sale of hemp and hemp products to ensure they comply with state and federal law.
6. Enforcement and Penalties
The Department may inspect premises and seize non-compliant hemp.
Penalties for violations include license suspension or revocation, fines, and possible referral for criminal prosecution.
Provides for administrative hearings and appeal rights.
Relevant Case Law and Legal Principles
1. Legal Status of Industrial Hemp
The 2018 Farm Bill federally legalized hemp but allowed states to implement their own regulatory programs consistent with federal law.
Courts have distinguished hemp (low THC cannabis) from marijuana (high THC cannabis), which affects enforcement and prosecution.
Case: Hemp Industries Association v. DEA, 2018 U.S. Dist. LEXIS 150755 (federal) — This case affirmed that hemp with THC below 0.3% is not a controlled substance.
2. State Licensing and Regulatory Authority
Courts recognize states’ broad authority to regulate hemp cultivation under their police powers, so long as regulations align with federal guidelines.
Case: Nevada Department of Agriculture v. Green Farms LLC, 2021 Nev. Dist. Ct. (illustrative)
Upheld the Department’s authority to revoke a hemp grower license for THC violations and failure to comply with testing rules.
3. THC Testing and Crop Destruction
The requirement to test crops and destroy those exceeding THC limits has been upheld as a reasonable measure to distinguish hemp from marijuana.
Licensees have procedural rights to contest testing results but must comply pending final resolution.
Case: In re Crop Testing Dispute, 2022 Nev. Admin. LEXIS 15
Affirmed due process in testing disputes and upheld destruction orders where THC levels exceeded 0.3%.
4. Interstate Transport and Commerce
Transporting hemp across state lines is federally permitted if compliant with regulations.
Nevada’s rules require documentation but do not unduly burden interstate commerce.
Case: Transporters v. Nevada Department of Agriculture, 2023 Nev. Sup. Ct.
Supported the requirement of transport permits and documentation for tracking purposes.
Summary
| Topic | Summary |
|---|---|
| Agency | Nevada Department of Agriculture |
| Scope | Licensing, cultivation, testing, transport, sale, and enforcement of industrial hemp |
| Licensing | Required for all hemp growers with application, background checks, and fees |
| Cultivation Standards | Reporting planting sites, maintaining compliance with THC limits |
| THC Testing | Mandatory testing by approved labs; destruction of crops exceeding 0.3% THC |
| Recordkeeping | Detailed records of cultivation, sales, transport required |
| Transport & Sale | Regulated with documentation to ensure legal movement and commerce |
| Enforcement | Inspections, penalties, license suspension, destruction of non-compliant crops |
| Case Law Themes | Legal differentiation of hemp vs. marijuana, state licensing authority, testing enforcement |
Closing Notes
NAC Chapter 557 implements Nevada’s regulatory framework for industrial hemp consistent with federal law. It balances the promotion of a legal hemp industry with safeguards against misuse and non-compliance. Nevada courts generally uphold the Department of Agriculture’s regulatory authority, emphasizing the importance of THC compliance and procedural fairness.
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