Legislative Council reads S323 draft to bar mail sales of unregistered cannabis; committee takes straw position

The Government Operations & Military Affairs committee on Thursday reviewed new draft language for S323 that would move sales restrictions into a new cannabis chapter and bar mail and online shipments of unregistered hemp or cannabis except to licensed cannabis laboratories in the state. Legislative Council staff read the draft aloud and members took a nonbinding straw poll rather than a formal vote.

Legislative Council staff said the bill adds a new section, identified in the draft as 7 BSA 834, defining “unregistered hemp” or “unregistered cannabis” as products required to be registered with the Cannabis Control Board that are not so registered. The draft explicitly forbids shipment of such unregistered products to anyone other than a licensed cannabis laboratory in the state.

"No person shall cause unregistered hemp or unregistered cannabis purchased by mail or through a computer network, telephone network, or other electronic network to be shipped to anyone other than a licensed cannabis laboratory in the state," the Legislative Council reading said, describing the placement and scope of the sales restriction.

The proposal also incorporates a knowledge-based assistance clause, barring anyone who, "without knowledge or reason to know of the violation," provides substantial assistance to a violator. Drafters said that clause was adapted from language in another section reviewed earlier in the day.

On penalties, the draft specifies that a "knowing or intentional violation of the section shall be punishable by imprisonment for not more than five years or a fine not more than $5,000, or both." The bill would also allow the Attorney General to seek civil penalties of up to $5,000 per violation and to pursue injunctions and recovery of investigation costs, expert witness fees and reasonable attorneys' fees.

The language treats violations as unfair or deceptive trade practices under the state's consumer protection act and authorizes courts, where appropriate, to direct profits or gains from violations to the state treasurer for deposit in the general fund. Drafters told members penalties and remedies in the new section would be cumulative with other remedies available under state law.

Drafting staff said certain hemp-related sections (listed in the draft as sections 22, 23, 23A, 23B, 24 and 25) were written to be effective on passage, while the remainder of S323 would become effective July 1, 2026.

During discussion, a member asked whether the committee intended to mirror changes in S198 that reduce some penalties. After conferring with Mr. Anderson, the speaker said the committee had decided it would be unwise to apply the same penalty reductions to cannabis in this draft; other members signaled agreement. Legislative Council staff confirmed the group had not taken a formal position and that any tally taken that day would be a straw poll pending review of a clean copy of the bill.

With no formal motion or recorded vote, members indicated informal "fair thumbs" and recessed until 2:00 p.m. while staff circulated the clean document and the B amendment draft. The committee did not adopt a formal position on S323 during the session.