Regulate Hemp-Derived Consumables.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 4
HOUSE BILL 328
Committee Substitute Favorable 3/25/25
Committee Substitute #2 Favorable 4/8/25
Senate Health Care Committee Substitute Adopted 6/17/25

Short Title: Regulate Hemp-Derived Consumables. (Public)
Sponsors:
Referred to:
March 10, 2025
*H328-v-4*
A BILL TO BE ENTITLED 1
AN ACT TO REGULATE T HE SALE, DISTRIBUTIO N, AND POSSESSION OF 2
HEMP-DERIVED CONSUMA BLE PRODUCTS AND TO ADD KRATOM AS A 3
SCHEDULE VI CONTROLLED SUBSTANCE. 4
The General Assembly of North Carolina enacts: 5
6
PART I. REGULATE HEMP-DERIVED CONSUMABLE PRODUCTS 7
SECTION 1.(a) The General Statutes are amended by adding a new Chapter to read: 8
"Chapter 18D. 9
"Regulation of Hemp-Derived Consumable Products. 10
"Article 1. 11
"Regulation of Hemp-Derived Consumable Products. 12
"§ 18D-100. Definitions. 13
Unless the context requires otherwise, the following definitions apply in this Chapter: 14
(1) ALE Division. – The Alcohol Law Enforcement Division of the Department 15
of Public Safety. 16
(2) Batch. – The hemp-derived consumable product produced during a period of 17
time under similar conditions and identified by a specific code that allows 18
traceability. 19
(3) Distributor. – A person or entity that delivers or sells hemp -derived 20
consumable products for the purpose of distribution in commerce. 21
(4) Exit package. – An opaque bag or other similar opaque covering provided at 22
the point of sale that satisfies the child-resistant effectiveness standards under 23
16 C.F.R. § 1700.15(b)(1) when tested in accordance with the requirements 24
of 16 C.F.R. § 1700.20 in which hemp -derived consumable products are 25
placed by a seller after being sold to the ultimate consumer of the product. 26
(5) Hemp. – As defined in G.S. 90-87. 27
(6) Hemp-derived cannabinoid. – Any phytocannabinoid found in hemp, 28
including delta-9 tetrahydrocannabinol (delta-9 THC), tetrahydrocannabinolic 29
acid (THCA), cannab idiol (CBD), cannabidiolic acid (CBDA), cannabinol 30
(CBN), cannabigerol (CBG), cannabichromene (CBC), cannabicyclol (CBL), 31
cannabivarin (CBV), tetrahydrocannabivarin (THCV), cannabidivarin 32
(CBDV), cannabicitran (CBT), delta-7 tetrahydrocannabinol (delta-7 THC), 33
delta-8 tetrahydrocannibinol (delta-8 THC), or delta-10 tetrahydrocannibinol 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 328-Fourth Edition
(delta-10 THC). This term also includes any synthetic cannabinoid derived 1
from hemp and contained in a hemp-derived consumable product. 2
(7) Hemp-derived consumable product. – A hemp product that is a finished good 3
intended for human ingestion or inhalation that at the time o f sale to the 4
ultimate consumer contains a delta-9 THC concentration of not more than 5
three-tenths of one percent (0.3%) on a dry weight basis . This term does not 6
include hemp products intended for topical application , or seeds or 7
seed-derived ingredients that are generally recognized as safe by the United 8
States Food and Drug Administration (FDA). 9
(8) Hemp product. – As defined in G.S. 90-87. 10
(9) Independent testing laboratory. – A laboratory that meets all of the following 11
conditions: 12
a. Holds an ISO 17025 accreditation or is registered with the Drug 13
Enforcement Administration (DEA) in accordance with 21 C.F.R. § 14
1301.13. 15
b. Does not have a direct or indirect interest in the entity whose product 16
is being tested. 17
c. Does not have a direct or indirect interest in a facility that cultivates, 18
processes, distributes, dispenses, or sells hemp -derived consumable 19
products, or prohibited hemp -derived consumable products in this 20
State or any other jurisdiction. 21
d. Has entered into a compliance agreement with the ALE Division to 22
conduct tetrahydrocannabinol concentr ation sampling and testing 23
using the high-performance chromatography (HPLC) testing method. 24
(10) Ingestion. – The process of consuming hemp through the mouth, by 25
swallowing into the gastrointestinal system or through tissue absorption. 26
(11) Inhalation. – The process of consuming hemp into the respiratory system 27
through the mouth or nasal passages. 28
(12) License. – A license issued in accordance with this Chapter. 29
(13) Licensee. – A person who has been issued a license in accordance with this 30
Chapter. 31
(14) Manufacture. – To c ompound, blend, extract, infuse, cook, or otherwise 32
manipulate hemp or a hemp-derived cannabinoid to make, prepare, or package 33
hemp-derived consumable products. 34
(15) Manufacturer. – Any person or entity that engages in the process of 35
manufacturing, preparing, or packaging of hemp -derived consumable 36
products. 37
(16) Producer. – Any person or entity licensed to grow hemp by the United States 38
Department of A griculture that engages in the process of farming and 39
harvesting hemp that is intended to be used in the manufacture of a 40
hemp-derived consumable product. 41
(17) Prohibited hemp -derived consumable product. – A hemp product that is a 42
finished good intended for human ingestion or inhalation that contain s 43
concentrations of hemp -derived cannabinoids other than delta -9 THC. This 44
term does not include hemp products intended for topical application or seeds 45
or seed-derived ingredients that are generally recognized as safe by the United 46
States Food and Drug Administration (FDA). 47
(18) Retail dealer. – Any person who sells a hemp-derived consumable product to 48
the ultimate consumer of the product, including a remote seller. 49
(19) Serving. – A quantity of a hemp -derived consumable product reasonably 50
suitable for a person's use in a single day. 51
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"§ 18D-101. Sales restrictions on hemp-derived consumable products. 1
(a) Restrictions. – No person shall do any of the following: 2
(1) Sell a hemp-derived consumable product to a person who is under 21 years of 3
age. Any retail dealer of hemp -derived consumable products shall demand 4
proof of age from a prospective purchaser of hemp-derived consumable 5
products before the hemp-derived consumable products are released to the 6
purchaser if the retail dealer has reasonable grounds to believe that the 7
prospective purchaser is under 30 years of age. Any retail dealer that sells a 8
hemp-derived consumable product on an internet website shall verify the age 9
of any prospective purchaser and shall use a method of delivery that requires 10
the signature of a person at least 21 years of age before the hemp -derived 11
consumable product is released. 12
(2) Knowingly, or having reason to know, distribute samples of hemp-derived 13
consumable products in or on a public street, sidewalk, park , or public 14
building. 15
(3) Engage in the business of selling a hemp-derived consumable product without 16
a valid license issued in accordance with this Chapter. 17
(4) Knowingly, or having reason to know, sell a hemp-derived consumable 18
product that has a concentration of more than three -tenths of one percent 19
(0.3%) on a dry weight basis of delta-9 tetrahydrocannabinol. 20
(5) Knowingly, or having reason to know, sell a hemp -derived consumable 21
product that is not contained in an exit package or a child proof package. 22
(6) Knowingly, or having reason to know, sell at retail or on an internet website 23
offering delivery in this State, a hemp-derived consumable product that is not 24
in compliance with G.S. 18D-105. 25
(7) Knowingly, or having reason to know, sell at retail hemp flower or a product 26
containing hemp flower that is not accompanied by a certificate of analysis 27
issued within the previous six-month period demonstrating that the hemp 28
flower or product containing hemp flower has a concentration of no more than 29
three-tenths of one percent ( 0.3%) on a dry weight basis of delta -9 30
tetrahydrocannabinol. 31
(8) Knowingly, or having reason to know, sell or distribute a prohibited 32
hemp-derived consumable product. 33
(b) Civil Penalties. – Violation of this section shall have the following penalties: 34
(1) For the first violatio n, the ALE Division may impose a civil penalty of no 35
more than five hundred dollars ($500.00). 36
(2) For the second violation within three years, the ALE Division may impose a 37
civil penalty of no more than seven hundred fifty dollars ($750.00). 38
(3) For the third violation within three years of the first violatio n, the ALE 39
Division shall impose a civil penalty of no more than one thousand dollars 40
($1,000) and suspend the retail dealer's license for one year. 41
(4) For a fourth or subsequent violation within three years of the first violation, 42
the ALE Division shall impose a civil penalty of no more than two thousand 43
dollars ($2,000) and revoke the retail dealer's license. 44
(c) Testing Fee. – In any case in which the ALE Division imposes a penalty pursuant to 45
subsection (b) of this section, for a violation of subdivision (4) of subsection (a) of this section, 46
the retail dealer shall also pay to the ALE Division the actual costs paid by the ALE Division for 47
testing of the samples resulting in the violation. Any fee collected pursuant to this subsection 48
shall be remitted to the ALE Division. 49
(d) Defenses. – It is a defense to a violation of subdivision (1) of subsection (a) of this 50
section if the retail dealer does any of the following: 51
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(1) Shows that the purchaser produced a drivers license, a special identification 1
card issued under G.S. 20-37.7 or issued by the state agency of any other state 2
authorized to issue similar official state special identification cards for that 3
state, a tribal enrollment card issued by a State or federally recognized Indian 4
Tribe, a military identification card, or a passport showing the purchaser's age 5
to be at least the required age for purchase and bearing a physical description 6
of the person named on the card reasonably describing the purchaser. 7
(2) Produces evidence of other facts that reasonably indicated at the time of sale 8
that the purchaser was at least the required age. 9
(3) Shows that at the time of purchase, the purchaser utilized a biometric 10
identification system that demonstrated (i) the purchaser's age to be at least 11
the required age for the purchase and (ii) the purchaser had previously 12
registered with the retail dealer or retail dealer's agent a drivers license, a 13
special identification card issued under G.S. 20-37.7 or issued by the state 14
agency of any other state authorized to issue similar official state special 15
identification cards for that state, a military identification card, or a passport 16
showing the purchaser's date of birth and bearing a physical description of the 17
person named on the document. 18
(e) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 19
this section , shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with 20
G.S. 115C-457.2. 21
(f) Criminal Penalty. – Any person against whom a civil penalty has been im posed for 22
violation of subdivision (3) of subsection (a) of this section who commits a second violation of 23
subdivision (3) of subsection (a) of this section is guilty of a Class A1 misdemeanor. Any person 24
who commits a third or sub sequent violation of subdivision (3) of subsection (a) of this section 25
is guilty of a Class H felony . Unless another provision of the law providing for greater 26
punishment applies, any person who commits a violation of subdivision (4) of subsection (a) of 27
this section is guilty of a Class H felony. Any person who commits a violation of subdivision (8) 28
of subsection (a) of this section is guilty of a Class G felony. 29
"§ 18D-101A. Sales and transfer restrictions on a producer. 30
(a) Restriction. – A producer shall not knowingly sell or in any way transfer hemp that 31
has been processed or prepared with the intent to be used in a hemp-derived consumable product 32
to any person or entity other than a manufacturer licensed pursuant to this Chapter. 33
(b) Prohibition. – A producer shall not knowingly sell or in any way transfer hemp that 34
has been processed or prepared with the intent to be used in a prohibited hemp-derived 35
consumable product to any person or entity. 36
(c) Civil Penalties. – Violation of this section shall have the following penalties: 37
(1) For the first violatio n, the ALE Division may impose a civil penalty of no 38
more than five hundred dollars ($500.00). 39
(2) For the second violation within three years, the ALE Division may impose a 40
civil penalty of no more than seven hundred fifty dollars ($750.00). 41
(3) For the third violation within three years of the first violatio n, the ALE 42
Division shall impose a civil penalty of no more than one thousand dollars 43
($1,000). 44
(4) For a fourth or subsequent violation within three years of the first violation, 45
the ALE Division shall impose a civil penalty of no more than two thousand 46
dollars ($2,000). 47
(d) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 48
this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with 49
G.S. 115C-457.2. 50
General Assembly Of North Carolina Session 2025
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(e) Criminal Penalty. – Any person against whom a civil penalty has been imposed for 1
violation of subsection (a) of this section who commits a second violation of this section is guilty 2
of a Class A1 misdemeanor. Any person who commits a third or subsequent violation of 3
subsection (a) of this section is guilty of a Class H felony. Any person who commits a violation 4
of subsection (b) of this section is guilty of a Class G felony. 5
(f) Applicability of this Section. – Nothing in this section shall be construed as 6
prohibiting a producer from selling or transferring hemp that is intended to be used in any lawful 7
product other than those regulated by this Chapter. 8
"§ 18D -102. Offenses involving the p urchase, attempted purchase, or possession of 9
hemp-derived consumable products by a person under 21 years of age. 10
(a) It is unlawful for any person to give a hemp-derived consumable product to anyone 11
less than 21 years old. 12
(b) It is unlawful for a person less than 21 years old to possess, purchase, or attempt to 13
purchase a hemp-derived consumable product. 14
(c) It is unlawful for any person to enter or attempt to enter a place where hemp-derived 15
consumable products are sold or consumed, or to obtain or attempt to obtain hemp-derived 16
consumable products, or to obtain or attempt to obtain permission to purchase hemp-derived 17
consumable products, in violation of subsection (b) of this section, by using or attempting to use 18
any of the following: 19
(1) A fraudulent or altered drivers license. 20
(2) A fraudulent or altered identification document other than a drivers license. 21
(3) A drivers license issued to another person. 22
(4) An identification document other than a drivers license issued to another 23
person. 24
(5) Any other form or means of identification that indicates or symbolizes that the 25
person is not prohibited from purchasing or possessing a hemp-derived 26
consumable product under this section. 27
(d) It is unlawful for any person to permit the use of the person's drivers license or any 28
other form of identification of any kind issued or given to the person by any other person who 29
violates or attempts to violate subsection (b) of this section. 30
(e) Penalties. – 31
(1) Any person less than 21 years old who violates this section is guilty of a Class 32
2 misdemeanor. 33
(2) Any person at least 21 years old who violates this section is guilty of a Class 34
1 misdemeanor. 35
(3) Aiding or abetting a violation of this section shall be punished as provided in 36
subdivisions (1) and (2) of this subsection, and all other provisions of this 37
section shall apply to that offense. 38
(f) Nothing in this section prohibits an underage person from selling, transporting, or 39
possessing hemp-derived consumable products in the course of employment, if the employment 40
of the person for that purpose is lawful under applicable youth employment statutes. 41
"§ 18D-102.5. Offense for possessing prohibited hemp-derived consumable product. 42
Any person who possesses a prohibited hemp-derived consumable product is guilty of a Class 43
A1 misdemeanor. 44
"§ 18D -103. Offenses involving the manufacture and distribution of hemp -derived 45
consumable products. 46
(a) Offenses. – It is unlawful for a manufacturer or distributor to do any of the following: 47
(1) Knowingly, or having reason to know, distribute samples of a hemp -derived 48
consumable product in or on a public street, sidewalk, park, or public building. 49
General Assembly Of North Carolina Session 2025
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(2) Engage in the business of manufacturing or distributing a hemp -derived 1
consumable product without a valid license issued in accordance with this 2
Chapter. 3
(3) Knowingly, or having reason to know, manufacture or distribute a 4
hemp-derived consumable product that has a concentration of more than 5
three-tenths of one percent (0.3%) on a dry weight basis of delta-9 6
tetrahydrocannabinol. 7
(4) Knowingly, or having reason to know, manufacture or distribute a prohibited 8
hemp-derived consumable product. 9
(b) Criminal Penalties. – A violation of subdivision (a)(1), (a)(2), or (a)(3) of this section 10
is a Class A1 misdemeanor. A violation of subdivision (a)(4) of this section is a Class G felony. 11
(c) Civil Penalties. – In addition to any criminal punishment authorized by this section, 12
for any violation of this section the ALE Division shall take one or more of the following actions 13
against the licensee: 14
(1) Suspend the licensee's license for a specified period of time not longer than 15
three years. 16
(2) Revoke the licensee's license. 17
(3) Impose conditions on the operating hours of the licensee's business. 18
(4) Impose civil penalties as follows: 19
a. For a first violation, impose a civil penalty of no more than one 20
thousand dollars ($1,000). 21
b. For a second violation within three years, impose a civil penalty of no 22
more than five thousand dollars ($5,000). 23
c. For a third violation within three years of the first violation, impose a 24
civil penalty of no more than seven thousand five hundred dollars 25
($7,500). 26
(d) Testing Fee. – In any case in which the ALE Division imposes a penalty pursuant to 27
subsection (b) of this section, for a violation of subdivision ( 3) of subsection (a) of this section, 28
the manufacturer or distributor shall also pay to the ALE Division the actual costs paid by the 29
ALE Division for testing of the samples resulting in the violation. Any fee collected pursuant to 30
this subsection shall be remitted to the ALE Division. 31
(e) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 32
this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with 33
G.S. 115C-457.2. 34
(f) Defense. – It is a defense to a violation of subdivision (3) of subsection (a) of this 35
section if the manufacturer does all of the following: 36
(1) Recalls all hemp -derived consumable products from the same batch as the 37
product on which the violation is based. 38
(2) Has samples of the batch tested by an independent testing laboratory. The 39
sample size required for testing pursuant to this subdivision shall be five times 40
the number of units required pursuant to G.S. 18D-104(e) based on the size of 41
the batch at production, regardless of the number of units that are able to be 42
recalled. 43
(3) Provides certified results from the independent testing la boratory indicating 44
that the sample tested does not contain a concentration of more than 45
three-tenths of one percent (0.3%) on a dry weight basis total combined of 46
delta-9 tetrahydrocannabinol. 47
(g) Forfeiture. – Any product sold in violation of subdivision (3) or (4) of subsection (a) 48
of this section shall be subject to forfeiture pursuant to the procedures set forth in G.S. 18D-301. 49
"§ 18D-104. Testing prior to distribution. 50
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House Bill 328-Fourth Edition Page 7
(a) Requirement. – The manufacturer shall have a hemp-derived consumable product 1
tested prior to distribution to a distributor or before distributing the product to a retail dealer. If 2
the hemp-derived consumable product is packaged in a manner that may be sold to the ultimate 3
consumer of the product when delivered to the distributor and the distributor does not open such 4
package, the distributor is not required to test the hemp -derived consumable product. If the 5
hemp-derived consumable product is not packaged in a manner that may be sold to the ultimate 6
consumer of the product when delivered to the distributor or the distributor does open such 7
package, the distributor shall have the hemp -derived consumable product tested prior to 8
distribution. The testing shall determine the presence and amounts of any of the substances listed 9
in subsection (b) of this section . No product that contains more than the maximum amount 10
indicated for any substance in subsection (b) of this section shall be distributed or sold in this 11
State. 12
(b) Substances Tested; Limitations. – Hemp-derived consumable products shall be tested 13
for the presence of and amount of the following substances and shall not exceed the amounts 14
indicated: 15
(1) A concentration of three-tenths of one percent (0.3%) of delta -9 16
tetrahydrocannabinol, and no hemp -derived cannabinoid other than delta -9 17
tetrahydrocannabinol. 18
(2) 2,3-butanedione (Diacetyl). 19
(3) Abamectin, not to exceed 300 parts per billion for ingestion or 100 parts per 20
billion for inhalation. 21
(4) Acephate, not to exceed 3,000 parts per billion for ingestion or 100 parts per 22
billion for inhalation. 23
(5) Acequinocyl, not to exceed 2,000 parts per billion for ingestion or 100 parts 24
per billion for inhalation. 25
(6) Acetamiprid, not to exceed 3,000 parts per billion for ingestion or 100 parts 26
per billion for inhalation. 27
(7) Aldicarb, not to exceed 100 parts per billion for ingestion or inhalation. 28
(8) Azoxystrobin, not to exceed 3,000 parts per billion for ingestion or 100 parts 29
per billion for inhalation. 30
(9) Bifenazate, not to exceed 3,000 parts per billion for ingestion or 100 parts per 31
billion for inhalation. 32
(10) Bifenthrin, not to exceed 500 parts per billion for ingestion or 100 parts per 33
billion for inhalation. 34
(11) Boscalid, not to exceed 3,000 parts per billion for ingestion or 100 parts per 35
billion for inhalation. 36
(12) Captan, not to exceed 3,000 parts per billion for ingestion or 700 parts per 37
billion for inhalation. 38
(13) Carbaryl, not to exceed 500 parts per billion for inge stion or 500 parts per 39
billion for inhalation. 40
(14) Carbofuran, not to exceed 100 parts per billion for ingestion or inhalation. 41
(15) Chlorantraniliprole, not to exceed 3,000 parts per billion for ingestion or 1,000 42
parts per billion for inhalation. 43
(16) Chlordane, not to exceed 100 parts per billion for ingestion or inhalation. 44
(17) Chlorfenapyr, not to exceed 100 parts per billion for ingestion or inhalation. 45
(18) Chlormequat chloride, not to exceed 3,000 parts per billion for ingestion or 46
1,000 parts per billion for inhalation. 47
(19) Chlorpyrifos, not to exceed 100 parts per billion for ingestion or inhalation. 48
(20) Clofentezine, not to exceed 500 parts per billion for ingestion or 200 parts per 49
billion for inhalation. 50
(21) Coumaphos, not to exceed 100 parts per billion for ingestion or inhalation. 51
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(22) Cyfluthrin, not to exceed 1,000 parts per billion for ingestion or 500 parts per 1
billion for inhalation. 2
(23) Cypermethrin, not to exceed 1,000 parts per billion for ingestion or 500 parts 3
per billion for inhalation. 4
(24) Daminozide, not to exceed 100 parts per billion for ingestion or inhalation. 5
(25) DDVP (Dichlorvos), not to exceed 100 parts per billion for ingestion or 6
inhalation. 7
(26) Diazinon, not to exceed 200 parts per billion for ingestion or 100 p arts per 8
billion for inhalation. 9
(27) Dimethoate, not to exceed 100 parts per billion for ingestion or inhalation. 10
(28) Dimethomorph, not to exceed 3,000 parts per billion for ingestion or 200 parts 11
per billion for inhalation. 12
(29) Ethoprop(hos), not to exceed 100 parts per billion for ingestion or inhalation. 13
(30) Etofenprox, not to exceed 100 parts per billion for ingestion or inhalation. 14
(31) Etoxazole, not to exceed 1,500 parts per billion for ingestion or 100 parts per 15
billion for inhalation. 16
(32) Fenhexamid, not to exceed 3,000 parts per billion for ingestion or 100 parts 17
per billion for inhalation. 18
(33) Fenoxycarb, not to exceed 100 parts per billion for ingestion or inhalation. 19
(34) Fenpyroximate, not to exceed 2,000 parts per billion for ingestion or 100 parts 20
per billion for inhalation. 21
(35) Fipronil, not to exceed 100 parts per billion for ingestion or inhalation. 22
(36) Flonicamid, not to exceed 2,000 parts per billion for ingestion or 100 parts per 23
billion for inhalation. 24
(37) Fludioxonil, not to exceed 3,000 parts per billion for ingestion or 100 parts 25
per billion for inhalation. 26
(38) Hexythiazox, not to exceed 2,000 parts per billion for ingestion or 100 parts 27
per billion for inhalation. 28
(39) Imazalil, not to exceed 100 parts per billion for ingestion or inhalation. 29
(40) Imidacloprid, not to exceed 3,000 parts per billion for ingestion or 400 parts 30
per billion for inhalation. 31
(41) Kresoxim-methyl, not to exceed 1,000 parts per billion for ingestion or 100 32
parts per billion for inhalation. 33
(42) Malathion, not to exceed 2,000 parts per billion for ingestion or 200 parts per 34
billion for inhalation. 35
(43) Metalaxyl, not to exceed 3,000 parts per billion for ingestion or 100 parts per 36
billion for inhalation. 37
(44) Methiocarb, not to exceed 100 parts per billion for ingestion or inhalation. 38
(45) Methomyl, not to exceed 100 parts per billion for ingestion or inhalation. 39
(46) Methyl parathion, not to exceed 100 parts per billion for ingestion or 40
inhalation. 41
(47) Mevinphos, not to exceed 100 parts per billion for ingestion or inhalation. 42
(48) Myclobutanil, not to exceed 3,000 parts per billion for ingestion; prohibited at 43
any concentration for inhalation. 44
(49) Naled, not to exceed 500 parts per billion for ingestion or 250 parts per billion 45
for inhalation. 46
(50) Oxamyl, not to exceed 500 parts per billion for ingestion or inhalation. 47
(51) Paclobutrazol, not to exceed 100 parts per billion for ingestion or inhalation. 48
(52) Pentachloronitrobenzene, not to exceed 200 parts per billion for ingestion or 49
150 parts per billion for inhalation. 50
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(53) Permethrin, not to exceed 1,000 parts per billion for ingestion or 100 parts per 1
billion for inhalation. 2
(54) Phosmet, not to exceed 200 parts per billion for ingestion or 100 parts per 3
billion for inhalation. 4
(55) Piperonyl butoxide, not to exceed 3,000 parts per billion for ingestion or 5
inhalation. 6
(56) Prallethrin, not to exceed 400 parts per billion for ingestion or 100 parts per 7
billion for inhalation. 8
(57) Propiconazole, not to exceed 1,000 parts per billion for ingestion or 100 parts 9
per billion for inhalation. 10
(58) Propoxur, not to exceed 100 parts per billion for ingestion or inhalation. 11
(59) Pyrethrins, not to exceed 1,000 parts per billion for ingestion or 500 parts per 12
billion for inhalation. 13
(60) Pyridaben, not to exceed 3,000 parts per billion for ingestion or 200 parts per 14
billion for inhalation. 15
(61) Spinetoram, not to exceed 3,000 parts per billion for ingestion or 200 parts per 16
billion for inhalation. 17
(62) Spinosad A & D, not to exceed 3,000 parts per billion for ingestion or 100 18
parts per billion for inhalation. 19
(63) Spiromesifen, not to exceed 3,000 parts per billion for ingestion or 100 parts 20
per billion for inhalation. 21
(64) Spirotetramat, not to exceed 3,000 parts per billion for ingestion or 100 parts 22
per billion for inhalation. 23
(65) Spiroxamine, not to exceed 100 parts per billion for ingestion or inhalation. 24
(66) Tebuconazole, not to exceed 1,000 parts per billion for ingestion or 100 parts 25
per billion for inhalation. 26
(67) Thiacloprid, not to exceed 100 parts per billion for ingestion or 100 parts per 27
billion for inhalation. 28
(68) Thiamethoxam, not to exceed 1,000 parts per billion for ingestion or 500 parts 29
per billion for inhalation. 30
(69) Trifloxystrobin, not to exceed 3,000 parts per billion for ingestion or 100 parts 31
per billion for inhalation. 32
(70) 1,2-Dichloroethane, not to exceed 2 parts per million. 33
(71) 1,1-Dichloroethene, not to exceed 8 parts per million. 34
(72) Acetone, not to exceed 750 parts per million. 35
(73) Acetonitrile, not to exceed 60 parts per million. 36
(74) Benzene, not to exceed 1 part per million. 37
(75) Butane, not to exceed 5,000 parts per million. 38
(76) Chloroform, not to exceed 2 parts per million. 39
(77) Ethanol, not to exceed 5,000 parts per million. 40
(78) Ethyl Acetate, not to exceed 400 parts per million. 41
(79) Ethyl Ether, not to exceed 500 parts per million. 42
(80) Ethylene Oxide, not to exceed 5 parts per million. 43
(81) Heptane, not to exceed 5,000 parts per million. 44
(82) Hexane, not to exceed 250 parts per million. 45
(83) Isopropyl Alcohol, not to exceed 500 parts per million. 46
(84) Methanol, not to exceed 250 parts per million. 47
(85) Methylene Chloride, not to exceed 125 parts per million. 48
(86) Pentane, not to exceed 750 parts per million. 49
(87) Propane, not to exceed 5,000 parts per million. 50
(88) Toluene, not to exceed 150 parts per million. 51
General Assembly Of North Carolina Session 2025
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(89) Trichloroethylene, not to exceed 25 parts per million. 1
(90) Xylenes, Total (ortho-, meta-, para-), not to exceed 150 parts per million. 2
(91) Cadmium, not to exceed 500 parts per billion for ingestion or 200 parts per 3
billion for inhalation. 4
(92) Lead, not to exceed 500 parts per billion for ingestion or inhalation. 5
(93) Arsenic, not to exceed 1,500 parts per billion for ingestion or 200 parts per 6
billion for inhalation. 7
(94) Mercury, not to e xceed 3,000 parts per billion for ingestion or 200 parts per 8
billion for inhalation. 9
(95) Shiga toxin-producing Escherichia coli (STEC E. coli) and other pathogenic 10
E. coli, not to exceed 1 CFU per gram. 11
(96) Salmonella, not to exceed 1 CFU per gram. 12
(97) Aspergillus niger, Aspergillus fumigatus, Aspergillus flavus, Aspergillus 13
terreus, not to exceed 1 CFU per gram. 14
(98) Total Aflatoxin (B1, B2, G1, G2), not to exceed 20 parts per billion for 15
ingestion or inhalation. 16
(99) Ochratoxin, not to exceed 20 parts per billion for ingestion or inhalation. 17
(100) Total combined Yeast and Mold , not to exceed 100,000 CFU per gram for 18
ingestion and inhalation. 19
(c) Laboratory Qualifications. – A manufacturer or distributor shall contract with an 20
independent testing laboratory to provide the testing required under subsection (a) of this section. 21
(d) Testing Method. – A laboratory providing testing required under subsection (a) of this 22
section shall use high-performance liquid chromatography for any separation and measurement 23
required in the testing. 24
(e) Batch Testing. – A sample of e ach batch manufactured shall undergo the testing 25
required by subsection (a) of this section and shall obtain a certificate of analysis by a n 26
independent testing laboratory. The size of sample required to be tested shall be determined by 27
the size of the batch as follows: 28
(1) For a batch containing 1 to 999 units, the required sample size is 1 unit. 29
(2) For a batch containing 1,000 to 4,999 units, the required sample size is 2 units. 30
(3) For a batch containing 5,000 to 9,999 units, the required sample size is 3 units. 31
(4) For a batch containing 10,000 or more units, the required sample size is 5 32
units. 33
(f) Expiration Date. – A hemp-derived consumable product shall have an expiration date 34
on the label that conforms with applicable federal law. 35
(g) Civil Penalties. – A violation of this section shall result in the ALE Division taking 36
one or more of the following actions against the licensee: 37
(1) Suspend the licensee 's license for a specified period of time not longer than 38
three years. 39
(2) Revoke the licensee's license. 40
(3) Impose conditions on the operating hours of the licensee's business. 41
(4) Impose civil penalties as follows: 42
a. For a first violation, impose a civil penalty of no more than one 43
thousand dollars ($1,000). 44
b. For a second violation within three years, impose a civil penalty of no 45
more than five thousand dollars ($5,000). 46
c. For a third violation within three years of the first violation, impose a 47
civil penalty of no more than seven thousand five hundred dollars 48
($7,500). 49
General Assembly Of North Carolina Session 2025
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(h) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 1
this s ection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with 2
G.S. 115C-457.2. 3
(i) ALE Division Duties. – The ALE Division shall do all of the following: 4
(1) Maintain and post on its website a list of independent testing laboratories that 5
meet the qualifications to test intermediate manufactured material and finished 6
hemp-derived consumable products. 7
(2) Develop an application and process to determine qualifying independent 8
testing laboratories to be listed on the ALE Division's website. The application 9
shall require a potentially qualifying laboratory to submit a sample certificate 10
of analysis issued by the applying laboratory indicating that the laboratory is 11
capable of detecting the chemicals provided in subsection (b) of this section. 12
"§ 18D -105. Additional requirements and restrictions for hemp -derived consumable 13
products. 14
(a) Packaging Requirements. – A hemp-derived consumable product that is sold in this 15
State shall meet both of the following requirements: 16
(1) The product shall satisfy the child -resistant effectiveness standards under 16 17
C.F.R. § 1700.15(b)(1) when tested in accordance with the requirements of 16 18
C.F.R. § 1700.20. 19
(2) The product shall be labeled with consumer protection warnings in the form 20
of statements that cover all of the following: 21
a. A list of ingredients and possible allergens and a nutritional fact panel 22
or have a quick response code that can be scanned that directs 23
consumers to a website containing the list of ingredients and possible 24
allergens and a nutritional fact panel. 25
b. A statement that use while pregnant or breastfeeding may be harmful. 26
c. A statement that c onsumption of certain cannabinoids may impai r 27
your ability to drive and operate heavy machinery. 28
d. A statement that the product is not approved by the United States Food 29
and Drug Administration. 30
e. A statement to keep out of reach of children. 31
f. A statement to consult your physician before use. 32
g. If the product is ingestible, the amount of hemp-derived cannabinoid 33
in each serving of the product, measured in milligrams. 34
h. The total amount of hemp-derived cannabinoid in the entire package, 35
measured in milligrams. 36
i. The net weight of the product. 37
j. A quick response code that can be scanned to access a website 38
providing the product 's batch number, date received, date of 39
completion, and method of analysis for the te sting required under 40
G.S. 18D-106. 41
k. An expiration date in accordance with applicable federal law. 42
(b) Advertising Restrictions. – A manufacturer , distributor, or retail dealer of a 43
hemp-derived consumable product shall not advertise, market, or offer for sale the product by 44
using, in the labeling or design of the product or product packaging or in advertising or marketing 45
materials for the product trade dress, trademarks, branding, or other related materials, any 46
imagery or scenery that depicts or signifies characters or symbols known to appeal primarily to 47
persons under 21 years of age, including, but not limited to, superheroes, comic book characters, 48
video g ame characters, television show characters, movie characters, mythic al creatures, 49
unicorns, animals, cartoon characters, or any imitation of the packaging or labeling of candy, 50
General Assembly Of North Carolina Session 2025
Page 12 House Bill 328-Fourth Edition
cereals, sweets, chips, or other food products typically marketed to persons under 21 years of 1
age. 2
(c) Non-Liquid Ingestible Product Restrictions. – Any hemp-derived consumable 3
product intended for ingestion that is not a liquid and not intended for inhalation shall not do any 4
of the following: 5
(1) Be sold in a serving that contains more than 10 milligrams, in the aggregate, 6
of delta-9 tetrahydrocannabinol. 7
(2) Be formed in a shape that would violate subsection (b) of this section. 8
(c1) Liquid Ingestible Product Restrictions. – Any hemp -derived consumable product 9
intended for ingestion that is a liquid and not intended for inhalation shall not be sold in a 10
container that contains more than 10 milligrams in the aggregate of delta-9 tetrahydrocannabinol. 11
(c2) Inhalable Product for Vaporizat ion Restrictions. – Any hemp -derived consumable 12
product intended for inhalation by vaporization shall not be sold in a container that contains more 13
than 3 milliliters in the aggregate of delta-9 tetrahydrocannabinol. For the purposes of this 14
subsection, "vaporization" includes the heating of hemp -derived oil to release aerosolized 15
hemp-derived cannabinoids. 16
(d) Civil Penalties. – A violation of this section shall result in the ALE Division taking 17
one or more of the following actions against the licensee: 18
(1) Suspend the licensee 's license for a specified period of time not longer than 19
three years. 20
(2) Revoke the licensee's license. 21
(3) Impose conditions on the operating hours of the licensee's business. 22
(4) Impose civil penalties as follows: 23
a. For a first violation, impose a civil penalty of no more than one 24
thousand dollars ($1,000). 25
b. For a second violation within three years, impose a civil penalty of no 26
more than five thousand dollars ($5,000). 27
c. For a third violation within three years of the first v iolation, impose a 28
civil penalty of no more than seven thousand five hundred dollars 29
($7,500). 30
(e) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 31
this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with 32
G.S. 115C-457.2. 33
"§ 18D-105.1. Conduct on licensed premises. 34
(a) Certain Conduct. – It shall be unlawful for a licensee or the licensee 's agent or 35
employee to knowingly allow any of the following kinds of conduct to occur on the licensed 36
premises: 37
(1) Any violation of this Chapter. 38
(2) Any violation of the controlled substances, gambling, or any other unlawful 39
acts. 40
(b) Supervision. – It shall be unlawful for a permittee to fail to superintend in person or 41
through a manager the business for which a license is issued. 42
"§ 18D-106. Construction of Chapter. 43
Nothing in this Chapter shall be construed to do any of the following: 44
(1) Permit a person to undertake any task under the influence of a hemp -derived 45
consumable product when doing so would constitute negl igence or 46
professional malpractice. 47
(2) Permit a person to operate, navigate, or be in actual physical control of a motor 48
vehicle, aircraft, motorized watercraft, or any other vehicle while under the 49
influence of a hemp-derived consumable product. 50
General Assembly Of North Carolina Session 2025
House Bill 328-Fourth Edition Page 13
(3) Require an employer to accommodate the use of a hemp-derived consumable 1
product in a workplace or an employee working while under the influence of 2
a hemp-derived consumable product. 3
(4) Require an individual or establishment in lawful possession of property to 4
admit a guest, client, customer, or other visitor who is impaired as a result of 5
the person's use of a hemp-derived consumable product. 6
(5) Exempt a person from prosecution for a criminal offense related to impairment 7
or intoxication resulting from the use of a hemp-derived consumable product 8
or relieve a person from any requirement under law to submit to a breath, 9
blood, urine, or other test to detect the presence of a controlled substance. 10
(6) Limit the ability of an employer to establish, continue, or enforce a drug-free 11
workplace program or policy. 12
(7) Create a cause of action against an employer for wrongful discharge or 13
discrimination. 14
(8) Allow the possession, sale, manufacture, or distribution of any substance that 15
is otherwise prohibited by Article 5 of Chapter 90 of the General Statutes. 16
"Article 2. 17
"Licensing. 18
"§ 18D-200. Definitions. 19
The definitions contained in Article 1 of this Chapter apply to this Article as appropriate. 20
"§ 18D-201. Licensing requirements; qualifications; duration. 21
(a) Requirement. – Prior to the commencement of business or by July 1, 2026, whichever 22
is later, a person or entity engaged in this State in any business regulated by this Chapter and 23
listed in this subsection shall obtain a license to engage in that business from the ALE Division. 24
Businesses engaging in one or more of the following are required to obtain a license pursuant to 25
this section: 26
(1) Manufacturing hemp-derived consumable products. 27
(2) Distributing hemp-derived consumable products. 28
(3) Selling hemp-derived consumable products. 29
(b) Qualifications. – In order to obtain and maintain a license under subsection (a) of this 30
section, a person shall meet all of the following criteria: 31
(1) Be at least 21 years old. 32
(2) Submit to the ALE Division any information determined by the ALE Division 33
to be necessary for the efficient enforcement of this Chapter. 34
(3) Have not been convicted of a felony relating to a controlled substance within 35
10 years in any state or federal jurisdiction. 36
(4) Consent to reasonable inspection by the ALE Division of the inventory of 37
products regulated by this Chapter to ensure compliance with this Chapter and 38
the taking of samples found to not be in compliance with the packaging, 39
labeling, and testing requirements of this section. 40
(5) Be current in filing all applicable tax returns to the State and in payment of all 41
taxes, interest, and penalties collectable pursuant to G.S. 105-241.22. 42
(c) Licenses Required. – A person or entity engaged in more than one of the businesses 43
listed in subsection (a) of this section shall be required to obtain a separate license for each 44
business. Upon application for a license, the person or entity engaged in more than one type of 45
business regulated by this Chapter must indicate on the license application all of the businesses 46
listed in subsection (a) of this section in which the business engages or intends to engage. 47
(d) Duration. – A license issued pursuant to this Article is valid for a period of one year 48
and shall be renewed annually. 49
"§ 18D-202. Fees. 50
General Assembly Of North Carolina Session 2025
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(a) Application Fee. – The application fee for a license required pursuant to this Article 1
shall be as follows: 2
(1) For a license to manufacture hemp-derived consumable products, a fee of 3
twenty-five thousand dollars ($25,000). 4
(2) For a license to distribute hemp -derived consumable products, a fee of five 5
thousand dollars ($5,000). 6
(3) For a license to sell hemp-derived consumable products at a retail location, or 7
online for delivery to a person within this State , a fee of five hundred dollars 8
($500.00) for each location or each internet website offering delivery in this 9
State. 10
(b) Renewal Fee. – The renewal fee for a license issued pursuant to this Article shall be 11
as follows: 12
(1) For a license to manufacture hemp -derived consumable products, a renewal 13
fee of ten thousand dollars ($10,000). 14
(2) For a license to distribute hemp -derived consumable products, a renewal fee 15
of one thousand five hundred dollars ($1,500). 16
(3) For a license to sell hemp-derived consumable products at a retail location or 17
online for delivery to a person within this State , a renewal fee in the same 18
amount as the initial licensing fees established under subsection ( a) of this 19
section. 20
"§ 18D-203. ALE Division authority to deny or revoke. 21
The ALE Division may revoke or refuse to issue any license for any of the following: 22
(1) Failure to comply with or meet any of the qualifications required by 23
G.S. 18D-201(b). 24
(2) Submission of false or misleading information in an application for licensure 25
or renewal. 26
(3) Submission of false or misleading information in any report or information 27
required by this Chapter to be submitted to the ALE Division. 28
(4) Failure to comply with civil penalties authorized by this Chapter. 29
"§ 18D-204. Civil penalties; procedure. 30
Proceedings for the assessment of civil penalties authorized in Article 1 of this Chapter shall 31
be governed by Chapter 150B of the General Statutes. If the person or entity assessed a civil 32
penalty fails to pay the penalty to the ALE Division, the ALE Division may institute an action in 33
the superior court of the county in which the person resides or has their principal place of business 34
to recover the unpaid amount of the penalty. An action to recover a civil penalty under this 35
Chapter shall not relieve any party from any other penalty prescribed by law. 36
"§ 18D-205. ALE Division to develop application, adopt rules, remit revenue. 37
(a) License Application. – The ALE Division shall develop and make available online an 38
application for the license required by this Article. 39
(b) Tracking System. – The ALE Division shall establish, maintain, and control a 40
computer software tracking system that traces hemp from seed to sale as a hemp -derived 41
consumable product and allows real-time, 24-hour access by the ALE Division and any State or 42
local law enforcement agency in North Carolina to data from all production facilities and testing 43
laboratories. The tracking system must allow for integration of other seed-to-sale systems and, at 44
a minimum, include notification of when hemp seeds are planted, when hemp plants are harvested 45
and destroyed, and when hemp is transported, sold, stolen, diverted, or lost. Each manufacturer 46
and distributor shall use the seed -to-sale tracking system established by the ALE Division or 47
integrate its own seed-to-sale tracking system with the seed -to-sale tracking system established 48
by the ALE Division . The ALE Division shall establish minimum requirements for the 49
seed-to-sale tracking system used by a supplier. The ALE Division may contract with a vendor 50
General Assembly Of North Carolina Session 2025
House Bill 328-Fourth Edition Page 15
to establish the seed -to-sale tracking system. The vendor may not have a direct or indirect 1
financial interest in a manufacturer, distributor, or testing laboratory. 2
(c) Rules. – The ALE Division shall have authority to adopt, amend, and repeal rules to 3
carry out the provisions of this Chapter. 4
(d) Distribution of Revenue. – The revenue collected from fees established under this 5
Chapter shall be remitted to the ALE Division , on a monthly basis, to be used to cover costs 6
incurred by the ALE Division in enforcing the provisions of this Chapter. To the extent the funds 7
described in this subsection are deemed unappropriated, the funds are hereby appropriated for 8
the purpose set forth in this subsection. 9
"Article 3. 10
"Enforcement. 11
"§ 18D-300. ALE Division. 12
(a) Authority. – The ALE Division shall enforce the provisions of this Chapter in a 13
manner that is reasonable to reduce the extent to which hemp-derived consumable products are 14
sold or distributed to persons under 21 years of age and shall conduct random, unannounced 15
inspections at locations where hemp-derived consumable products are sold or distributed to 16
ensure compliance with the provisions of this Chapter. If, upon reasonable inspection, the ALE 17
Division determines a licensee 's inventory may consist of products not in compliance with the 18
packaging, labeling, and testing requirements of this Chapter, the ALE Division is authorized to 19
only take samples of a licensee's inventory of hemp -derived consumable products considered 20
noncompliant to be submitted for testing in order to determine compliance with the provisions of 21
this Chapter. To procure evidence of violations of this Chapter, ALE Division agents shall have 22
authority to investigate the operation of each licensee under this Chapter and each licensed 23
premises for which a license has been issued under this Chapter, to make inspections that include 24
viewing the entire premises, including the exa mination of records, equipment, and proceeds 25
related to the manufacture or distribution of hemp-derived consumable products. The inspection 26
authorized by this section may be made at any time it reasonably appears that someone is on the 27
premises. 28
(b) Interference with Inspection. – Refusal by a licensee or by any employee of a licensee 29
to permit ALE Division agents to enter the premises to make an inspection authorized by 30
subsection (a) of this section shall be cause for suspension, revocation, or other action against the 31
licensee. It shall be a Class 2 misdemeanor for any person to resist or obstruct an agent attempting 32
to make a lawful inspection under this section. 33
(c) Report. – Beginning January 1, 2027, the ALE Division shall submit an annual report 34
to the General Assembly describing in detail the ALE Division 's enforcement efforts under this 35
Chapter. The ALE D ivision shall also make the report required under this subsection available 36
on the ALE Division's website. 37
"§ 18D-301. Forfeiture of property. 38
(a) Seizure of Product. – For any hemp-derived consumable product subject to forfeiture, 39
a law enforcement officer is hereby authorized and empowered to seize and take possession of 40
such products. 41
(b) Custody until Trial. – A law enforcement officer seizing a product subject to forfeiture 42
shall provide for its safe storage until trial. 43
(c) Disposition after Criminal Trial. – The presiding judge in a criminal proceeding for 44
violation of G.S. 18D-103(a)(3) or G.S. 18D-103(a)(4) may take the following actions after 45
resolution of a charge against the owner or possessor of products subject to forfeiture under this 46
section: 47
(1) If the owner or possessor of the product is found guilty of a violation of 48
G.S. 18D-103(a)(3) or G.S. 18D-103(a)(4), the judge shall order the product 49
forfeited. 50
General Assembly Of North Carolina Session 2025
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(2) If the owner or possessor of the product is found not guilty, or if the charge is 1
dismissed or otherwise resolved in favor of the owner or possessor, the judge 2
shall order the product returned to the owner or possessor. 3
(3) If the product is also needed as evidence at an administrative hearing, the 4
judge shall provide that the order does not go into effect until the ALE 5
Division determines that the product is no longer needed for the administrative 6
proceeding. 7
(d) Return of Property . – Any owner of products seized for forfeiture may apply to a 8
judge to have the products returned to the owner if no criminal charge has been made in 9
connection with that product within a reasonable time after seizure. The judge may not order the 10
return of the product if possession by the owner would be unlawful." 11
SECTION 1.(b) G.S. 18B-500(b) reads as rewritten: 12
"(b) Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an 13
alcohol law-enforcement agent shall have authority to arrest and take other investigatory and 14
enforcement actions for any criminal offense: 15
(1) Occurring, encountered, or otherwise discovered on the premises of, or 16
elsewhere when the conduct relates to, a location under application for or 17
holding a permit issued by the North Carolina Alcoholic Beverage Control 18
Commission or the North Carolina Education Lottery Commission. 19
(1a) Occurring, encountered, or otherwise discovere d on the premises of, or 20
elsewhere when the conduct relates to , a location holding a license issued 21
pursuant to Chapter 18D of the General Statutes. 22
(2) Encountered or otherwise discovered while investigating or enforcing matters 23
for the North Carolina Alcoholic Beverage Control Commission or the North 24
Carolina Education Lottery Commission or encountered or otherwise 25
discovered while investigating or enforcing the provisions of this Chapter, 26
Chapter 18C of the General Statutes, Chapter 18D of the General St atutes, 27
G.S. 14-313, or Parts 1 and 2 of Article 37 of Chapter 14 of the General 28
Statutes. 29
(3) Encountered or otherwise discovered while carrying out any duty or function 30
assigned to the Division by law. 31
(4) Occurring in an agent's presence. 32
(5) When assisting another law enforcement agency." 33
SECTION 1.(c) G.S. 7A-304(a) reads as rewritten: 34
"(a) In every criminal case in the superior or district court, wherein the defendant is 35
convicted, or enters a plea of guilty or nolo contendere, or when costs are asse ssed against the 36
prosecuting witness, the following costs shall be assessed and collected. No costs may be 37
assessed when a case is dismissed. Only upon entry of a written order, supported by findings of 38
fact and conclusions of law, determining that there i s just cause, the court may (i) waive costs 39
assessed under this section or (ii) waive or reduce costs assessed under subdivision (7), (8), (8a), 40
(11), (12), or (13) of this section. No court may waive or remit all or part of any court fines or 41
costs without providing notice and opportunity to be heard by all government entities directly 42
affected. The court shall provide notice to the government entities directly affected of (i) the date 43
and time of the hearing and (ii) the right to be heard and make an obje ction to the remission or 44
waiver of all or part of the order of court costs at least 15 days prior to hearing. Notice shall be 45
made to the government entities affected by first-class mail to the address provided for receipt of 46
court costs paid pursuant to the order. The costs referenced in this subsection are listed below: 47
… 48
(14) For the services of any laboratory facility, the district or superior court judge 49
shall, upon conviction, order payment of the sum of six hundred dollars 50
($600.00) to be remitted t o the Alcohol Law Enforcement Division of the 51
General Assembly Of North Carolina Session 2025
House Bill 328-Fourth Edition Page 17
Department of Public Safety (ALE Division) or agency that paid for the 1
laboratory services. The cost shall be assessed only in cases in which (i) the 2
defendant is convicted of a violation of G.S. 18D-103(a)(3) or 3
G.S. 18D-103(a)(4) and (ii) as part of the investigation leading to the 4
defendant's conviction, testing was conducted at a laboratory on products 5
regulated under Chapter 18D of the General Statutes." 6
SECTION 1.(d) This section becomes effective July 1, 2026, and applies to all 7
hemp-derived consumable products possessed, sold, distributed, or manufactured on or after that 8
date, and to all offenses committed on or after that date. 9
10
PART II. TECHNICAL CORRECTION 11
SECTION 2.(a) G.S. 90-94.1 is repealed. 12
SECTION 2.(b) This section becomes effective December 1, 2025, and applies to 13
offenses committed on or after that date. 14
15
PART III. BAN HEMP -DERIVED CONSUMABLE PR ODUCTS ON EDUCATIONA L 16
PROPERTY 17
SECTION 3.(a) Article 29A of Chapter 115C of the General Statutes reads as 18
rewritten: 19
"Article 29A. 20
"Policy Prohibiting Use Of Tobacco Products and Hemp-Derived Consumable Products. 21
"§ 115C-407. Policy prohibiting tobacco product and hemp-derived consumable product 22
use in school buildings, grounds, and at school-sponsored events. 23
(a) Not later than August 1, 2008, local boards of education Governing bodies of public 24
school units shall adopt, implement, and enforce adopt a written policy prohibiting at all times 25
the use of any tobacco product or hemp-derived consumable product by any person in school 26
buildings, in school facilities, on school campuses, and in or on any other school property owned 27
or operated by the local school administrative public school unit. The policy shall further prohibit 28
the use of all tobacco products and hemp-derived consumable products by persons attending a 29
school-sponsored event at a location not listed in this subsection when in the presence of students 30
or school personnel or in an area where smoking is otherwise prohibited by law. 31
(b) The policy shall include at least all of the following elements: 32
(1) Adequate notice to students, parents, the public, and school personnel of the 33
policy. 34
(2) Posting of signs prohibiting at all times the use of tobacco products and 35
hemp-derived consumable products by any person in and on school property. 36
(3) Requirements that school personnel enforce the policy. 37
(c) The policy may permit tobacco products to be in cluded in instructional or research 38
activities in public school buildings if the activity is conducted or supervised by the faculty 39
member overseeing the instruction or research and the activity does not include smoking, 40
chewing, or otherwise ingesting the tobacco product. 41
(d) The North Carolina Health and Wellness Trust Fund Commission Tobacco 42
Prevention and Control Branch shall work with local boards of education governing bodies of 43
public school units to provide assistance with the implementation of this policy including 44
providing information regarding smoking cessation and prevention resources. Nothing in this 45
section, G.S. 143-595 through G.S. 143-601, or any other section prohibits a local board of 46
education governing body of a public school unit from adopting and enforcing a more restrictive 47
policy on the use of tobacco products or hemp-derived consumable products in school buildings, 48
in school facilities, on school campuses, or at school -related or school-sponsored events, and in 49
or on other school property. 50
(e) For the purposes of this section, the following definitions apply: 51
General Assembly Of North Carolina Session 2025
Page 18 House Bill 328-Fourth Edition
(1) Hemp-derived consumable product. – As defined in G.S. 18D-100. 1
(2) Tobacco product. – As defined in G.S. 14-313, including vapor products. 2
(3) Vapor product. – As defined in G.S. 14-313." 3
SECTION 3.(b) G.S. 115C-150.12C is amended by adding a new subdivision to 4
read: 5
"(15a) The board of trustees shall adopt a policy prohibiting tobacco product s and 6
hemp-derived consumable products in accordance with Article 29A of this 7
Chapter." 8
SECTION 3.(c) G.S. 115C-218.75 is amended by adding a new subsection to read: 9
"(a1) Policy Prohibiting Tobacco Product and Hemp -Derived Consumable Product . – A 10
charter school shall adopt a pol icy prohibiting tobacco product s or hemp-derived consumable 11
products in accordance with Article 29A of this Chapter." 12
SECTION 3.(d) G.S. 115C-238.66 is amended by adding a new subdivision to read: 13
"(23) Policy prohibiting tobacco product and hemp-derived consumable product. – 14
A regional school shall adopt a policy prohibiting tobacco product s and 15
hemp-derived consumable product s in accordance with Article 29A of this 16
Chapter." 17
SECTION 3.(e) G.S. 116-235 is amended by adding a new subsection to read: 18
"(k) Prohibition of Tobacco Product and Hemp -Derived Consumable Product. – The 19
Board of Trustees shall adopt a policy prohibiting tobacco product s and hemp -derived 20
consumable products in accordance with Article 29A of Chapter 115C of the General Statutes." 21
SECTION 3.(f) G.S. 116-239.8(b) is amended by adding a new subdivision to read: 22
"(26) Prohibition of tobacco product and hemp-derived consumable product. – The 23
laboratory school shall adopt a policy prohibiting tobacco product s and 24
hemp-derived consumable products in accordance with Article 29A of 25
Chapter 115C of the General Statutes." 26
SECTION 3.(g) G.S. 115C-562.5(a) is amended by adding a new subdivision to 27
read: 28
"(7a) For any school facility in which students attend in -person classes, the school 29
shall adopt a policy that is consistent with the requirements of Article 29A of 30
this Chapter to prohibit the use of tobacco products or hem p-derived 31
consumable products on school grounds." 32
SECTION 3.(h) This section is effective when it becomes law and applies beginning 33
with the 2025-2026 school year. 34
35
PART VI. ADD KRATOM AS A SCHEDULE VI CONTROLLED SUBSTANCE 36
SECTION 4.(a) G.S. 90-94 reads as rewritten: 37
"§ 90-94. Schedule VI controlled substances. 38
(a) This schedule includes the controlled substances listed or to be listed by whatever 39
official name, common or usual name, chemical name, or trade name designated. In determining 40
that such substance comes within this schedule, the Commission shall find: no currently accepted 41
medical use in the United States, or a relatively low potential for abuse in terms of risk to public 42
health and potential to produce psychic or physiological dependence liability based upon present 43
medical knowledge, or a need for further and continuing study to develop scientific evidence of 44
its pharmacological effects. 45
(b) The following controlled substances are included in this schedule: 46
(1) Marijuana. 47
(2) Tetrahydrocannabinols, except for tetrahydrocannabinols found in a product 48
with a delta -9 tetrahydrocannabinol concentration of not more than 49
three-tenths of one percent (0.3%) on a dry weight basis. 50
General Assembly Of North Carolina Session 2025
House Bill 328-Fourth Edition Page 19
(3) Repealed by Session Laws 2017 -115, s. 8, effective December 1, 2017, and 1
applicable to offenses committed on or after that date. 2
(4) Kratom. For the purposes of this subdivision, "Kratom" includes any quantity 3
of mitragynine or 7 hydroxymytragynine or both, extracted from the leaf of 4
the plant Mitragyna speciosa. 5
(c) Notwithstanding the provisions of this section, any prescription drug approved by the 6
federal Food and Drug Administration under Section 505 of the federal Food, Drug, and 7
Cosmetic Act that is designated, rescheduled, or deleted as a controlled substance under federal 8
law by the United States Drug Enforcement Administration shall be excluded from Schedule VI 9
and may be prescribed, distributed, dispensed, and used in accordance with federal law upon the 10
issuance of a notice, final rule, or interim final rule by the United States Drug Enforcement 11
Administration that designates , reschedules, or deletes such prescription drug as a controlled 12
substance under federal law, unless the Commission objects to such action as provided under 13
G.S. 90-88(d). If the Commission does not object as provided under G.S. 90-88(d), the 14
prescription drug shall be deemed to be designated, rescheduled, or deleted as a controlled 15
substance in accordance with federal law and in compliance with this Chapter." 16
SECTION 4.(b) This section becomes effective December 1, 2025, and applies to 17
offenses committed on or after that date. 18
19
PART V. EFFECTIVE DATE 20
SECTION 5. Except as otherwise provided, this act is effective when it becomes 21
law. 22