Regulate Kratom Products.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 468
Committee Substitute Favorable 6/3/25
Committee Substitute #2 Favorable 6/24/25

Short Title: Regulate Kratom Products. (Public)
Sponsors:
Referred to:
March 24, 2025
*H468-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO REGULATE THE SALE AND DISTRIBUTION OF KRATOM PRODUCTS, TO 2
PROHIBIT THE POSSESS ION OF KRATOM PRODUC TS AND HEMP -DERIVED 3
CONSUMABLE PRODUCTS ON SCHOOL PROPERTY, AND TO PROHIBIT THE 4
POSSESSION OF HEMP-DERIVED CONSUMABLE PRODUCTS BY PEOPLE UNDER 5
THE AGE OF TWENTY-ONE. 6
The General Assembly of North Carolina enacts: 7
SECTION 1. The General Statutes are amended by adding a new Chapter to read: 8
"Chapter 18E. 9
"Regulation of Kratom Products. 10
"Article 1. 11
"Regulation of Kratom Products. 12
"§ 18E-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 kratom product produced during a period of time under similar 17
conditions and identified by a specific code that allows traceability. 18
(3) Distributor. – A person or entity that delivers or sells kratom products for the 19
purpose of distribution in commerce. 20
(4) Independent testing laboratory. – A laboratory that meets all of the following 21
conditions: 22
a. Holds an ISO 17025 accreditation or is registered with the Drug 23
Enforcement Administration (DEA) in accordance with 21 C.F.R. § 24
1301.13. 25
b. Does not have a direct or indirect interest in the entity whose product 26
is being tested. 27
c. Does not have a direct or indirect interest in a facility that cultivates, 28
processes, distributes, dispenses, or sells kratom products in this State 29
or any other jurisdiction. 30
d. Has entered into a compliance agreement with the ALE Division to 31
conduct kratom product testing. 32
(5) Ingestion. – The process of consuming kratom through the mouth, by 33
swallowing into the gastrointestinal system or through tissue absorption. 34
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(6) Inhalation. – The process of consuming kratom into the respiratory system 1
through the mouth or nasal passages. 2
(7) Kratom product. – Any consumer commodity containing any quantity of 3
mitragynine or 7-hydroxymytragynine or both, extracted from the leaf of the 4
plant Mitragyna speciosa. This definition includes a synthesized kratom 5
product. 6
(8) License. – A license issued in accordance with this Chapter. 7
(9) Licensee. – A person who has been issued a license in accordance with this 8
Chapter. 9
(10) Manufacture. – To compound, blend, extract, infuse, cook, or otherwise 10
manipulate kratom to make, prepare, or package kratom products. 11
(11) Manufacturer. – Any person or entity that engages in the process of 12
manufacturing, preparing, or packaging of kratom products. 13
(12) Producer. – Any person or entity that engages in the process of farming and 14
harvesting kratom that is intended to be used in the manufacture of a kratom 15
product. 16
(13) Retail dealer. – Any person who sells a kratom product to the ultimate 17
consumer of the product, including a remote seller. 18
(14) Serving. – A quantity of a kratom product reasonably suitable for a person 's 19
use in a single day. 20
(15) Synthesized kratom product. – An alkaloid, metabolite, or alkaloid derivative 21
that has been created by chemical synthesis or biosynthetic means, including, 22
but not limited to , fermentation, recombinant techniques, yeast derived, 23
enzymatic techniques, rather than traditional food preparation techniques, 24
such as heating or extracting, that synthetically alters the composition of any 25
kratom alkaloid or constituent. 26
"§ 18E-101. Sales restrictions on kratom products. 27
(a) Restriction. – No person shall do any of the following: 28
(1) Knowingly, or having reason to know, sell a kratom product to a person who 29
is under 21 years of age. Any retail dealer of kratom products shall demand 30
proof of age from a prospective purchaser of kratom products before the 31
kratom products are released to the purchaser if the retail dealer has reasonable 32
grounds to believe that the prospective purchaser is under 30 years of age. 33
Any retail dealer that sells a kratom product on an internet website shall verify 34
the age of any p rospective purchaser or shall use a method of delivery that 35
requires the signature of a person at least 21 years of age before the kratom 36
product is released. 37
(2) Knowingly, or having reason to know, distribute samples of kratom products 38
in or on a public street, sidewalk, park, or public building. 39
(3) Engage in the business of selling a kratom product without a valid license 40
issued in accordance with this Chapter. 41
(4) Knowingly, or having reason to know, sell at retail a kratom product that 42
violates the provisions of G.S. 18E-104. 43
(5) Knowingly, or having reason to know, sell at retail or on an internet website 44
offering delivery in this State, a kratom product that is not in compliance with 45
G.S. 18E-105. 46
(b) Civil Penalties. – For any violation of this section, the ALE Division may take any of 47
the following actions against a retail dealer: 48
(1) For the first violation , the ALE Division may impose a civil penalty of no 49
more than five hundred dollars ($500.00). 50
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(2) For the second violation within three years, the ALE Division may impose a 1
civil penalty of no more than seven hundred fifty dollars ($750.00). 2
(3) For the third violation within three years of the first violation, the ALE 3
Division shall impose a civil penalty of no more than one thousand dollars 4
($1,000) and suspend the retail dealer's license for one year. 5
(4) For a fourth or subsequent violation within three years of the first violation, 6
the ALE Division shall impose a civil penalty of no more than two thousand 7
dollars ($2,000) and revoke the retail dealer's license. 8
(c) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 9
a retail dealer 's license, the ALE Division may accept from the retail dealer an offer in 10
compromise to pay a penalty of not more than three thousand dollars ($3,000). The ALE Division 11
may either accept a compromise or revoke a license, but not both. The ALE Division may accept 12
a compromise and suspend the license in the same case. 13
(d) Testing Fee. – In any case in which the ALE Division imposes a penalty pursuant to 14
subsection (b) of this section, for a violation of subdivision (4) of subsection (a) of this section, 15
the retail dealer shall also pay to the ALE Division the actual costs paid by the ALE Division for 16
testing of the samples resulting in the violation. Any fee collected pursuant to this subsection 17
shall be remitted to the ALE Division. 18
(e) Defenses. – It is a defense to a violation of subdivision ( 1) of subsection ( a) of this 19
section if the retail dealer does any of the following: 20
(1) Shows that the purchaser produced a drivers license, a special identification 21
card issued under G.S. 20-37.7 or issued by the state agency of any other state 22
authorized to issue similar official state special identification cards for that 23
state, a tribal enrollment card issued by a State or federally recognized Indian 24
Tribe, a military identification card, or a passport showing the purchaser's age 25
to be at least the required age for purchase and bearing a physical description 26
of the person named on the card reasonably describing the purchaser. 27
(2) Produces evidence of other facts that reasonably indicated at the time of sale 28
that the purchaser was at least the required age. 29
(3) Shows that at the time of purchase, the purchaser utilized a biometric 30
identification system that demonstrated (i) the purchaser's age to be at least 31
the required age for the purchase and (ii) the purchaser had previously 32
registered with the retail dealer or retail dealer's agent a drivers license, a 33
special identification card issued under G.S. 20-37.7 or issued by the state 34
agency of any other state authorized to issue similar official state special 35
identification cards for that state, a military identification card, or a passport 36
showing the purchaser's date of birth and bearing a physical description of the 37
person named on the document. 38
(f) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 39
this section, including any penalty re ceived as an offer in compromise, shall be remitted to the 40
Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 41
(g) Forfeiture. – Any product sold in violation of subdivision (4) of subsection (a) of this 42
section shall be subject to forfeiture pursuant to the procedures set forth in G.S. 18E-401. 43
(h) Criminal Penalty. – Any person against whom a civil penalty has been imposed for 44
violation of subdivision (3) of subsection (a) of this section who commits a second violation of 45
subdivision (3) of subsection (a) of this section is guilty of a Class A1 misdemeanor. Any person 46
who commits a third or subsequent violation of subdivision (3) of subsection (a) of this section 47
is guilty of a Class H felony. 48
"§ 18E-101A. Sales and transfer restrictions on a producer. 49
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(a) Restriction. – A producer shall not knowingly sell or in any way transfer kratom that 1
has been processed or prepared with the intent to be used in a kratom product to any person or 2
entity other than a manufacturer licensed pursuant to this Chapter. 3
(b) Civil Penalties. – Violation of this section shall have the following penalties: 4
(1) For the first violatio n, the ALE Division may impose a civil penalty of no 5
more than five hundred dollars ($500.00). 6
(2) For the second violation within three years, the ALE Division may impose a 7
civil penalty of no more than seven hundred fifty dollars ($750.00). 8
(3) For the third violation within three years of the first violatio n, the ALE 9
Division shall impose a civil pen alty of no more than one thousand dollars 10
($1,000). 11
(4) For a fourth or subsequent violation within three years of the first violation, 12
the ALE Division shall impose a civil penalty of no more than two thousand 13
dollars ($2,000). 14
(c) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 15
this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with 16
G.S. 115C-457.2. 17
(d) Criminal Penalty. – Any person against whom a civil penalty has been imposed for 18
violation of this section who commits a second violation of this section is guilty of a Class A1 19
misdemeanor. Any person who commits a third or subsequent violation of this section is guilty 20
of a Class H felony. 21
(e) Applicability of th is Section. – Nothing in this section shall be construed as 22
prohibiting a producer from selling or transferring kratom that is intended to be used in any lawful 23
product other than those regulated by this Chapter. 24
"§ 18E-102. Offenses involving the purchase, attempted purchase, or possession of kratom 25
products by a person under 21 years of age. 26
(a) It is unlawful for any person to give a kratom product to anyone less than 21 years 27
old without the consent of the underaged person's parent or legal guardian. 28
(b) It is unlawful for a person less than 21 years old to purchase or attempt to purchase a 29
kratom product. 30
(c) It is unlawful for any person to enter or attempt to enter a place where kratom products 31
are sold or consumed, or to obtain or attempt to obtain kratom products, or to obtain or attempt 32
to obtain permission to purchase kratom products, in violation of subsection (b) of this section, 33
by using or attempting to use any of the following: 34
(1) A fraudulent or altered drivers license. 35
(2) A fraudulent or altered identification document other than a drivers license. 36
(3) A drivers license issued to another person. 37
(4) An identification document other than a drivers license issued to another 38
person. 39
(5) Any other form or means of identification that indicates or symbolizes that the 40
person is not prohibited from purchasing or possessing a kratom product under 41
this section. 42
(d) It is unlawful for any person to permit the use of the person's drivers license or any 43
other form of identification of any kind issued or given to the person by any other person who 44
violates or attempts to violate subsection (b) of this section. 45
(e) Penalties. – 46
(1) Any person less than 21 years old who violates this section is guilty of a Class 47
2 misdemeanor. 48
(2) Any person at least 21 years old who violates this section is guilty of a Class 49
1 misdemeanor. 50
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(3) Aiding or abetting a violation of this section shall be punished as provided in 1
subdivisions (1) and (2) of this subsection, and all other provisions of this 2
section shall apply to that offense. 3
(f) Nothing in this section prohibits an underage person from selling, transporting, or 4
possessing kratom products in the course of employment, if the employment of the person for 5
that purpose is lawful under applicable youth employment statutes. 6
"§ 18E-103. Offenses involving the manufacture and distribution of kratom products. 7
(a) Offenses. – It is unlawful for a manufacturer or distributor to do any of the following: 8
(1) Knowingly, or having reason to know, distribute samples of a kratom product 9
in or on a public street, sidewalk, park, or public building. 10
(2) Engage in the business of manufacturing or distributing a kratom product 11
without a valid license issued in accordance with this Chapter. 12
(3) Knowingly, or having reason to know, manufacture or distribute a kratom 13
product that violates the provisions of G.S. 18E-104. 14
(b) Criminal Penalties. – A violation of this section is a Class A1 misdemeanor. 15
(c) Civil Penalties. – In addition to any crimina l punishment authorized by this section, 16
for any violation of this section the ALE Division shall take one or more of the following actions 17
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 violation, impose a 28
civil penalty of no more than seven thousand five hundred dollars 29
($7,500). 30
(d) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 31
a manufacturer's or distributor's license, the ALE Division may accept from the manufacturer or 32
distributor an offer in compromise to pay a penalty of not more than eight thousand dollars 33
($8,000). The ALE Division may either accept a compromise or revoke a license, but not both. 34
The ALE Division may accept a compromise and suspend the license in the same case. 35
(e) Testing Fee. – In any case in which the ALE Division imposes a penalty pursuant to 36
subsection (c) of this section, for a violation of subdivision ( 3) of subsection (a) of this section, 37
the manufacturer or distributor shall also pay to the ALE Division the actual costs paid by the 38
ALE Division for testing of the samples resulting in the violation. Any fee collected pursuant to 39
this subsection shall be remitted to the ALE Division. 40
(f) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 41
this section, including any penalty received as an offer in compromise, shall be remitted to the 42
Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 43
(g) Forfeiture. – Any product sold in violation of subdivision (3) of subsection (a) of this 44
section shall be subject to forfeiture pursuant to the procedures set forth in G.S. 18E-301. 45
"§ 18E-104. Testing prior to distribution. 46
(a) Requirement. – The manufacturer shall have a kratom product tested prior to 47
distribution to a distributor or before distributing the product to a retail dealer. If the kratom 48
product is packaged in a manner that may be sold to the ultimate consumer of the product when 49
delivered to the distributor and the distributor does not open such package, the distributor is not 50
required to test the kratom product. If the kratom product is not packaged in a manner that may 51
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be sold to the ultimate consumer of the product when delivered to the distributor or the distributor 1
does open such package, the distributor shall have the kratom product tested prior to distribution. 2
The testing shall determine the presence and amounts of any of the substances listed in subsection 3
(b) of this section. No product that contains more than the maximum amount indicated for any 4
substance in subsection (b) of this section shall be distributed or sold in this State. 5
(b) Substances Tested; Limitations. – A kratom manufacturer, distributor, or retail dealer 6
shall not prepare, manufacture, distribute, or offer for sale any of the following: 7
(1) A kratom product that is adulterated with a dangerous non-kratom substance. 8
A kratom product is adulterated with a dangerous non-kratom substance if the 9
kratom product is mixed or packed with a non -kratom substance and that 10
substance affects the quality or strength of the kratom product to such a degree 11
as to potentially render the kratom product injurious to a consumer. 12
(2) A kratom product that is contaminated with a dangero us non -kratom 13
substance. A kratom product is contaminated with a dangerous non -kratom 14
substance if the kratom product contains a poisonous or otherwise deleterious 15
non-kratom ingredient, including any controlled substance regulated by 16
Article 5 of Chapter 90 of the General Statutes. 17
(3) A kratom extract t hat contains levels of residual solvents higher than is 18
allowed in the U.S. Pharmacopeia 467. 19
(4) A kratom product containing a level of 7-hydroxymitragynine in the alkaloid 20
fraction that is greater than two percent (2%) or 0.4 mg on a dry matter basis 21
of the overall alkaloid composition of the product. 22
(5) A kratom product containing any s ynthetic alkaloids , including synthetic 23
mitragynine, synthetic 7 -hydroxymitragynine, or any other synthetically 24
derived compounds of the kratom plant. 25
(6) A kratom product that does not provide adequate labeling directions necessary 26
for safe use by consumers, including a recommended serving size, the 27
recommended number of servings per day, and the number of servings in the 28
package that is sold. 29
(7) A kratom product in any form that is combustible, intended to be used for 30
vaporization, or injectable. 31
(8) A synthesized kratom product that is marketed or sold as "kratom." 32
(c) Laboratory Qualifications. – A manufacturer or distributor shall contract with an 33
independent testing laboratory to provide the testing required under subsection (a) of this section. 34
(d) Testing Method. – A laboratory providing testing required under subsection (a) of this 35
section shall use high-performance liquid chromatography for any separation and measurement 36
required in the testing. 37
(e) Batch Testing. – A sample of each batch manufactured shall undergo the testing 38
required by subsection (a) of this section and s hall obtain a certificate of analysis by a n 39
independent testing laboratory. The size of sample required to be tested shall be determined by 40
the size of the batch as follows: 41
(1) For a batch containing 1 to 999 units, the required sample size is 1 unit. 42
(2) For a batch containing 1,000 to 4,999 units, the required sample size is 2 units. 43
(3) For a batch containing 5,000 to 9,999 units, the required sample size is 3 units. 44
(4) For a batch containing 10,000 or more units, the required sample size is 5 45
units. 46
(f) Expiration Date. – A kratom product shall have an expiration date on the label that 47
conforms with applicable federal law. 48
(g) Civil Penalties. – A violation of this section shall result in the ALE Division taking 49
one or more of the following actions against the licensee: 50
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(1) Suspend the licensee 's license for a specified period of time not longer than 1
three years. 2
(2) Revoke the licensee's license. 3
(3) Impose conditions on the operating hours of the licensee's business. 4
(4) Impose civil penalties as follows: 5
a. For a first violation, impose a civil penalty of no more than one 6
thousand dollars ($1,000). 7
b. For a second violation within three years, impose a civil penalty of no 8
more than five thousand dollars ($5,000). 9
c. For a third violation within three years of the first violation, impose a 10
civil penalty of no more than seven thousand five hundred dollars 11
($7,500). 12
(h) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 13
a manufacturer's or distributor's license, the ALE Division may accept from the manufacturer or 14
distributor an offer in compromise to pay a penalty of not more than eight thousand dollars 15
($8,000). The ALE Division may either accept a compromise or revoke a license, but not both. 16
The ALE Division may accept a compromise and suspend the license in the same case. 17
(i) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 18
this section, including any penalty received as an offer in compromise, shall be remitted to the 19
Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 20
(j) ALE Division Duties. – The ALE Division shall do all of the following: 21
(1) Maintain and post on its website a list of testing laboratories that meet the 22
independent testing lab oratory standard to test intermediate manufactured 23
material and finished kratom products. 24
(2) Develop an application and process to determine qualifying laboratories to be 25
listed on the ALE Division 's website. The application shall require a 26
potentially qualifying laborat ory to submit a sample certificate of analysis 27
issued by the applying laboratory indicating that the laboratory is capable of 28
detecting the chemicals provided in subsection (b) of this section. 29
"§ 18E-105. Additional requirements for manufacturers and distributors. 30
(a) Registration of Products. – All manufacturers and distributors shall register with the 31
ALE Division all kratom products offered for sale in this State by the manufacturer or distributor. 32
The registration shall include any information that the ALE Division deems necessary to ensure 33
compliance with the provisions of this Chapter. 34
(b) Adverse Event Reports. – A manufacturer or distributor, upon receipt of any adverse 35
event report related to a product manufactured or distributed by that manufacturer or distributor, 36
shall submit a copy of the adverse event report, as required under 21 U.S.C. § 379aa-1, to the 37
ALE Division within 30 days. If the manufacturer or distributor does not submit a copy of the 38
adverse event report within the time allotted, the registration for that product shall be revoked 39
and the license for that manufacturer or distributor shall be suspended or revoked, at the 40
discretion of the ALE Division. 41
(c) Packaging Requirements. – A kratom product that is sold in this State shall be labeled 42
with consumer protection warnings in the form of statements that cover all of the following: 43
(1) A list of ingredients and possible allergens and a nutritional fact pane l or a 44
quick response code that can be scanned that directs consumers to a website 45
containing the list of ingredients and possible allergens and a nutritional fact 46
panel. 47
(2) A statement that the product is not approved by the United States Food and 48
Drug Administration. 49
(3) A statement to keep out of reach of children. 50
(4) A statement to consult your health professional before use. 51
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(5) The net weight of the product. 1
(6) An expiration date in accordance with applicable federal law. 2
(7) A listing of quantitative declarations of the amount of mitrogynine and 3
7-hydroxymitrogynine per serving and other ingredients in the product. 4
(8) The recommended serving size. 5
(d) Advertising Restrictions. – A manufacturer, distributor, or retail dealer of a kratom 6
product shall not advertise, market, or offer for sale the product by using, in the labeling or design 7
of the product or product packaging or in advertising or marketing materials for the product trade 8
dress, trademarks, branding, or other related material s, any imagery or scenery that depicts or 9
signifies characters or symbols known to appeal primarily to persons under 21 years of age, 10
including, but not limited to, superheroes, comic book characters, video game characters, 11
television show characters, movi e characters, mythical creatures, unicorns, animals, cartoon 12
characters, or any imitation of the packaging or labeling of candy, cereals, sweets, chips, or other 13
food products typically marketed to persons under 21 years of age. 14
"§ 18E-105.1. Conduct on licensed premises. 15
(a) Certain Conduct. – It shall be unlawful for a licensee or the licensee 's agent or 16
employee to knowingly allow any of the following kinds of conduct to occur on the licensed 17
premises: 18
(1) Any violation of this Chapter. 19
(2) Any violation of the controlled substances, gambling, or any other unlawful 20
acts. 21
(b) Supervision. – It shall be unlawful for a licensee to fail to superintend in person or 22
through a manager the business for which a license is issued. 23
"§ 18E-105.2. Safe harbor protection for goods not sold in State. 24
(a) This Chapter shall not apply to the following: 25
(1) A safe harbor kratom product. 26
(2) A safe harbor manufacturer or storage facility. 27
(b) For the purposes of this section, a "Safe Harbor Kratom Product" means kratom, 28
whether a finished product or in the process o f being produced, that is permitted to be 29
manufactured for distribution, produced for distribution, packaged for distribution, processed for 30
distribution, prepared for distribution, treated for distribution, transported for distribution, or held 31
for distribution in North Carolina for export from North Carolina but that is not permitted to be 32
sold or distributed in North Carolina. 33
(c) For the purposes of this section, a "Safe Harbor Manufacturer or Storag e Facility" 34
means a facility that manufactures for distribution, produces for distribution, packages for 35
distribution, processes for distribution, prepares for distribution, treats for distribution, transports 36
for distribution, or holds for distribution a Safe Harbor Kratom Product. 37
"§ 18E-106. Construction of Chapter. 38
Nothing in this Chapter shall be construed to do any of the following: 39
(1) Permit a person to undertake any task under the influence of a kratom product 40
when doing so would constitute negligence or professional malpractice. 41
(2) Permit a person to operate, navigate, or be in actual physical control of a motor 42
vehicle, aircraft, motorized watercraft, or any other vehicle while under the 43
influence of a kratom product. 44
(3) Require an employer to accommodate the use of a kratom product in a 45
workplace or an employee working while under the influence of a kratom 46
product. 47
(4) Require an individual or establishment in lawful possession of property to 48
admit a guest, client, customer, or other visitor who is impaired as a result of 49
the person's use of a kratom product. 50
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(5) Exempt a person from prosecution for a criminal offense related to impairment 1
or intoxication resulting from the use of a kratom product or relieve a person 2
from any requirement under law to submit to a breath, blood, urine, or other 3
test to detect the presence of a controlled substance. 4
(6) Limit the ability of an employer to establish, continue, or enforce a drug-free 5
workplace program or policy. 6
(7) Create a cause of action against an employer for wrongful discharge or 7
discrimination. 8
(8) Allow the possession, sale, manufacture, or distribution of any substance that 9
is otherwise prohibited by Article 5 of Chapter 90 of the General Statutes. 10
"Article 2. 11
"Licensing. 12
"§ 18E-200. Definitions. 13
The definitions contained in Article 1 of this Chapter apply to this Article as appropriate. 14
"§ 18E-201. Licensing requirements; qualifications; duration. 15
(a) Requirement. – Prior to the commencement of business or by July 1, 2026, whichever 16
is later, a person or entity engaged in this State in any business regulated by this Chapter and 17
listed in this subsection shall obtain a license to engage in that business from the ALE Division. 18
Businesses engaging in one or more of the following are required to obtain a license pursuant to 19
this section: 20
(1) Manufacturing kratom products. 21
(2) Distributing kratom products. 22
(3) Selling kratom products. 23
(b) Qualifications. – In order to obtain and maintain a license under subsection (a) of this 24
section, a person shall meet all of the following criteria: 25
(1) Be at least 21 years old. 26
(2) Submit to the ALE Division any information determined by the ALE Division 27
to be necessary for the efficient enforcement of this Chapter. 28
(3) Have not been convicted of a felony relating to a controlled substance within 29
10 years in any state or federal jurisdiction. 30
(4) Consent to reasonable inspection by the ALE Division of the inventory of 31
products regulated by this Chapter to ensure compliance with this Chapter and 32
the taking of samples found to not be in compliance with the packaging, 33
labeling, and testing requirements of this section. 34
(5) Be current in filing all applicable tax returns to the State and in payment of all 35
taxes, interest, and penalties collectable pursuant to G.S. 105-241.22. 36
(c) Single License Required. – A person or entity engaged in more than one of the 37
businesses listed in subsection (a) of this section shall only be required to obtain a single license. 38
Upon application for a license, the person or entity engaged in more than one type of business 39
regulated by this Chapter must indicate on the license application all of the businesses listed in 40
subsection (a) of this section in which the business engages or intends to engage. A person or 41
entity applying for a license for more than one type of business listed in subsection (a) of this 42
section shall pay a single fee as provided in G.S. 18E-202(c). 43
(d) Duration. – A license issued pursuant to this Article is valid for a period of one year 44
and shall be renewed annually. 45
"§ 18E-202. Fees. 46
(a) Application Fee. – The application fee for a license required pursuant to this Article 47
shall be as follows: 48
(1) For a license to manufacture kratom products, a fee of fifteen thousand dollars 49
($15,000). However, if an applicant submits proof that the applicant's gross 50
General Assembly Of North Carolina Session 2025
Page 10 House Bill 468-Third Edition
income for the calendar year prior to application was less than one hundred 1
thousand dollars ($100,000), the fee shall be one thousand dollars ($1,000). 2
(2) For a license to distribute kratom products, a fee of two thousand five hundred 3
dollars ($2,500). However, if an applicant submits proof that the applicant 's 4
gross income for the calendar year prior to application was less than one 5
hundred thousand dollars ($100,000), the fee shall be se ven hundred fifty 6
dollars ($750.00). 7
(3) For a license to sell kratom products at a retail location, or online for delivery 8
to a person within this State , a fee of two hundred fifty dollars ($250.00) for 9
each location or each internet website offering delivery in this State. However, 10
a single entity with more than 25 locations, internet websites offering delivery 11
in this State, or a combination of the two shall not pay more than five thousand 12
dollars ($5,000) and shall submit a list of all locations and all internet websites 13
offering delivery in this State to the ALE Division. 14
(b) Renewal Fee. – The renewal fee for a license issued pursuant to this Article shall be 15
as follows: 16
(1) For a license to manufacture kratom products, a renewal fee of five thousand 17
dollars ($5,000). 18
(2) For a license to distribute kratom products, a renewal fee of seven hundred 19
fifty dollars ($750.00). 20
(3) For a license to sell kratom products at a retail location or online for delivery 21
to a person within this State , a renewal fee in the same amount as the initial 22
licensing fees established under subsection (a) of this section. 23
(c) For an application for or renewal of a license to engage in more than one business 24
listed in subsection (a) of G.S. 18E-201, the fee shall be the highest fee of those prescribed for 25
the types of business indicated on the application or renewal, as applied to that applicant or 26
licensee. 27
"§ 18E-203. ALE Division authority to deny or revoke. 28
The ALE Division may revoke or refuse to issue any license for any of the following: 29
(1) Failure to comply with or meet any of the qualifications required by 30
G.S. 18E-201(b). 31
(2) Submission of false or misleading information in an application for licensure 32
or renewal. 33
(3) Submission of false or misleading information in any report or information 34
required by this Chapter to be submitted to the ALE Division. 35
(4) Failure to comply with civil penalties authorized by this Chapter. 36
"§ 18E-204. Civil penalties; procedure. 37
Proceedings for the assessment of civil penalties authorized in Article 1 of this Chapter shall 38
be governed by Chapter 150B of the General Statutes. If the person or entity assessed a civil 39
penalty fails to pay the penalty to the ALE Division, the ALE Division may institute an action in 40
the superior court of the county in which the person resides or has their principal place of business 41
to recover the unpaid amount of the penalty. An action to recover a civil penalty under this 42
Chapter shall not relieve any party from any other penalty prescribed by law. 43
"§ 18E-205. ALE Division to develop application, adopt rules, remit revenue. 44
(a) License Application. – The ALE Division shall develop and make available online an 45
application for the license required by this Article. 46
(b) Rules. – The ALE Division shall have authority to adopt, amend, and repeal rules to 47
carry out the provisions of this Chapter. 48
(c) Distribution of Revenue. – The revenue collected from fees established under this 49
Chapter shall be remitted to the ALE Division , on a monthly basis, to be used to cover costs 50
incurred by the ALE Division in enforcing the provisions of this Chapter. To the extent the funds 51
General Assembly Of North Carolina Session 2025
House Bill 468-Third Edition Page 11
described in this subsection are deemed unappropriated, the funds are hereby appropriated for 1
the purpose set forth in this subsection. 2
"Article 3. 3
"Enforcement. 4
"§ 18E-300. ALE Division. 5
(a) Authority. – The ALE Division shall enforce the provisions of this Chapter in a 6
manner that is reasonable to reduce the extent to which kratom products are sold or distributed 7
to persons under 21 years of age and shall conduct random, unannounced inspections at locations 8
where kratom products are sold or distributed to ensure compliance with the provisions of this 9
Chapter. If, upon reasonable inspection, the ALE Division determines a licensee's inventory may 10
consist of products not in compliance with the packaging, labeling, and testing requirements of 11
this Chapter, t he ALE Division is authorized to only take samples of a licensee's inventory of 12
kratom products considered noncompliant to be submi tted for testing in order to determine 13
compliance with the provisions of this Chapter. To procure evidence of violations of this Chapter, 14
ALE Division agents shall have authority to investigate the operation of each licensee under this 15
Chapter and each licensed premises for which a license has been issued under this Chapter, to 16
make inspections that include viewing the entire premises, including the examination of records, 17
equipment, and proceeds related to the manufacture or distribution of kratom products. The 18
inspection authorized by this section may be made at any time it reasonably appears that someone 19
is on the premises. 20
(b) Interference with Inspection. – Refusal by a licensee or by any employee of a licensee 21
to permit ALE Division agents to enter the premises to make an inspection authorized by 22
subsection (a) of this section shall be cause for suspension, revocation, or other action against the 23
licensee. It shall be a Class 2 misdemeanor for any person to resist or obstruct an agent attempting 24
to make a lawful inspection under this section. 25
(c) Report. – Beginning January 1, 2027, the ALE Division shall submit an annual report 26
to the General Assembly describing in detail the ALE Division 's enforcement efforts under this 27
Chapter. The ALE D ivision shall also make the report required under this subsection available 28
on the ALE Division's website. 29
"§ 18E-301. Forfeiture of property. 30
(a) Seizure of Product. – For any kratom product subject to forfeiture, a law enforcement 31
officer is hereby authorized and empowered to seize and take possession of such products. 32
(b) Custody until Trial. – A law enforcement officer seizing a product subject to forfeiture 33
shall provide for its safe storage until trial. 34
(c) Disposition after Criminal Trial. – The presiding judge in a criminal proceeding for 35
violation of G.S. 18E-103(a)(3) may take the following actions after resolution of a charge 36
against the owner or possessor of products subject to forfeiture under this section: 37
(1) If the owner or possessor of the product is found guilty of a violation of 38
G.S. 18E-103(a)(3), the judge shall order the product forfeited. 39
(2) If the owner or possessor of the product is found not guilty, or if the charge is 40
dismissed or otherwise resolved in favor of the owner or possessor, the judge 41
shall order the product returned to the owner or possessor. 42
(3) If the product is also needed as evidence at an administrative hearing, the 43
judge shall provide that the order does not go into effect until the ALE 44
Division determines that the product is no longer needed for the administrative 45
proceeding. 46
(d) Disposition after Civil Forfeiture Proceeding. – Violations of G.S. 18E-101(a)(4) 47
shall be subject to forfeiture under the procedure set forth in G.S. 75D-5. 48
(e) Disposition of Forfeited Product. – Notwithstanding G.S. 75D-5(j), a judge ordering 49
forfeiture of property shall order the product destroyed. 50
General Assembly Of North Carolina Session 2025
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(f) Return of Property . – Any owner of products seized for forfeiture may apply to a 1
judge to have the products returned to the owner if no criminal charge has been made or no action 2
for civil forfeiture has been commenced in connection with that product within a reasonable time 3
after seizure. The judge may not order the return of the product if possession by the owner would 4
be unlawful." 5
SECTION 2. G.S. 18B-500(b) reads as rewritten: 6
"(b) Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an 7
alcohol law-enforcement agent shall have authority to arrest and take other investigatory and 8
enforcement actions for any criminal offense: 9
(1) Occurring, encountered, or otherwise discovered on the premises of, or 10
elsewhere when the conduct relates to, a location under application for or 11
holding a permit issued by the North Carolina Alcoholic Beverage Control 12
Commission or the North Carolina Education Lottery Commission. 13
(1b) Occurring, encountered, or otherwise discovered on the premises of, or 14
elsewhere when the conduct relates to , a location holding a license issued 15
pursuant to Chapter 18E of the General Statutes. 16
(2) Encountered or otherwise discovered while investigating or enforcing matters 17
for the North Carolina Alcoholic Beverage Control Commission or the North 18
Carolina Education Lottery Commission or encountered or otherwise 19
discovered while investigating or enfor cing the provisions of this Chapter, 20
Chapter 18C of the General Statutes, Chapter 18E of the General Statu tes, 21
G.S. 14-313, or Parts 1 and 2 of Article 37 of Chapter 14 of the General 22
Statutes. 23
(3) Encountered or otherwise discovered while carrying out any duty or function 24
assigned to the Division by law. 25
(4) Occurring in an agent's presence. 26
(5) When assisting another law enforcement agency." 27
SECTION 3. G.S. 7A-304(a) reads as rewritten: 28
"(a) In every criminal case in the superior or district court, where in the defendant is 29
convicted, or enters a plea of guilty or nolo contendere, or when costs are assessed against the 30
prosecuting witness, the following costs shall be assessed and collected. No costs may be 31
assessed when a case is dismissed. Only upon entr y of a written order, supported by findings of 32
fact and conclusions of law, determining that there is just cause, the court may (i) waive costs 33
assessed under this section or (ii) waive or reduce costs assessed under subdivision (7), (8), (8a), 34
(11), (12), or (13) of this section. No court may waive or remit all or part of any court fines or 35
costs without providing notice and opportunity to be heard by all government entities directly 36
affected. The court shall provide notice to the government entities directly affected of (i) the date 37
and time of the hearing and (ii) the right to be heard and make an objection to the remission or 38
waiver of all or part of the order of court costs at least 15 days prior to hearing. Notice shall be 39
made to the government entities affected by first-class mail to the address provided for receipt of 40
court costs paid pursuant to the order. The costs referenced in this subsection are listed below: 41
… 42
(15) For the services of any laboratory facility, the district or superior court judg e 43
shall, upon conviction, order payment of the sum of six hundred dollars 44
($600.00) to be remitted to the Alcohol Law Enforcement Division of the 45
Department of Public Safety (ALE Division) or agency that paid for the 46
laboratory services. The cost shall be assessed only in cases in which (i) the 47
defendant is convicted of a violation of G.S. 18E-103(a)(3) and (ii) as part of 48
the investigation leading to the defendant's conviction, testing was conducted 49
at a laboratory on products regulated under Chapter 18 E of the Genera l 50
Statutes." 51
General Assembly Of North Carolina Session 2025
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SECTION 4.(a) Article 29A of Chapter 115C of the General Statutes reads as 1
rewritten: 2
"Article 29A. 3
"Policy Prohibiting Use Of Tobacco Products, Kratom Products, and Hemp-Derived 4
Consumable Products. 5
"§ 115C -407. Policy prohibiting tobacco product, kratom product, and hemp -derived 6
consumable product use in school buildings, grounds, and at school -sponsored 7
events. 8
(a) Not later than August 1, 2008, local boards of education Governing bodies of public 9
school units shall adopt, implement, and enforce adopt a written policy prohibiting at all times 10
the use of any tobacco product, kratom product, or hemp-derived consumable product by any 11
person in school buildings, in school facilities, on school campuses, and in or on any other school 12
property owned or operated by the local school administrative public school unit. The policy 13
shall further prohibit the use of all tobacco products, kratom product s, and hemp -derived 14
consumable products by persons attending a school -sponsored event at a location not listed in 15
this subsection when in the presence of students or school personnel or in an area where smoking 16
is otherwise prohibited by law. 17
(b) The policy shall include at least all of the following elements: 18
(1) Adequate notice to students, parents, the public, and school personnel of the 19
policy. 20
(2) Posting of signs prohibiting at all times the use of tobacco products, kratom 21
products, and hemp-derived consumable products by any person in and on 22
school property. 23
(3) Requirements that school personnel enforce the policy. 24
(c) The policy may permit tobacco products products, kratom products, and 25
hemp-derived consumable products to be included in instructional or research activities in public 26
school buildings if the activity is conducted or supervised by the faculty member overseeing the 27
instruction or research and the activity does not include smoking, chewing, or otherwise ingesting 28
the tobacco product.product, kratom product, or hemp-derived consumable product. 29
(d) The North Carolina Health and Wellness Trust Fund Commission Tobacco 30
Prevention and Control Branch shall work with local boards of education governing bodies of 31
public school units to provide assistance with the implementation of this policy including 32
providing information regarding smoking cessation and prevention resources. Nothing in this 33
section, G.S. 143-595 through G.S. 143-601, or any ot her section prohibits a local board of 34
education governing body of a public school unit from adopting and enforcing a more restrictive 35
policy on the use of tobacco products, kratom products, or hemp-derived consumable products 36
in school buildings, in school facilities, on school campuses, or at school -related or 37
school-sponsored events, and in or on other school property. 38
(e) For the purposes of this section, the following definitions apply: 39
(1) Hemp-derived consumable product. – As defined in G.S. 14-313.1. 40
(2) Kratom product. – As defined in G.S. 18E-100 41
(3) Tobacco product. – As defined in G.S. 14-313, including vapor products. 42
(4) Vapor product. – As defined in G.S. 14-313." 43
SECTION 4.(b) G.S. 115C-150.12C is amended by adding a new subdivision to 44
read: 45
"(15a) The board of trustees shall adopt a policy prohibiting tobacco product s, 46
kratom products, and hemp-derived consumable products in accordance with 47
Article 29A of this Chapter." 48
SECTION 4.(c) G.S. 115C-218.75 is amended by adding a new subsection to read: 49
"(a1) Policy Prohibiting Tobacco Product , Kratom Product, and Hemp -Derived 50
Consumable Product . – A charter school shall adopt a policy prohibiting tobacco product s, 51
General Assembly Of North Carolina Session 2025
Page 14 House Bill 468-Third Edition
kratom products, or hemp-derived consumable products in accordance with Article 29A of this 1
Chapter." 2
SECTION 4.(d) G.S. 115C-238.66 is amended by adding a new subdivision to read: 3
"(23) Policy prohibiting tobacco product, kratom product, and hemp-derived 4
consumable product. – A regional school shall adopt a policy prohibiting 5
tobacco products, kratom products, and hemp-derived consumable product s 6
in accordance with Article 29A of this Chapter." 7
SECTION 4.(e) G.S. 116-235 is amended by adding a new subsection to read: 8
"(k) Prohibition of Tobacco Product, Kratom Product, and Hemp-Derived Consumable 9
Product. – The Board of Trustees shall adopt a policy prohibiting tobacco product s, kratom 10
products, and hemp-derived consumable products in accordance with Article 29A of Chapter 11
115C of the General Statutes." 12
SECTION 4.(f) G.S. 116-239.8(b) is amended by adding a new subdivision to read: 13
"(26) Prohibition of tobacco product, kratom product, and hemp-derived 14
consumable product. – The laboratory school shall adopt a policy prohibiting 15
tobacco products, kratom products, and hemp-derived consumable products 16
in accordance with Article 29A of Chapter 115C of the General Statutes." 17
SECTION 4.(g) G.S. 115C-562.5(a) is amended by adding a new subdivision to 18
read: 19
"(7a) For any school facility in which students attend in -person classes, the school 20
shall adopt a policy that is consistent with the requirements of Article 29A of 21
this Chapter to prohibit the use of tobacco products, kratom products, or 22
hemp-derived consumable products on school grounds." 23
SECTION 5. Article 39 of Chapter 14 of the General Statutes is amended by adding 24
a new section to read: 25
"§ 14-313.1. Possession of hemp-derived consumable products under age 21 prohibited. 26
(a) Definitions. – Unless the context requires otherwise, the following definitions apply 27
in this section: 28
(1) Hemp. – As defined in G.S. 90-87. 29
(2) Hemp-derived cannabinoid. – Any phytocannabinoid found in hemp, 30
including delta-9 tetrahydrocannabinol (delta-9 THC), tetrahydrocannabinolic 31
acid (THCA), cannab idiol (CBD), cannabidiolic acid (CBDA), cannabinol 32
(CBN), cannabigerol (CBG), cannabichromene (CBC), cannabicyclol (CBL), 33
cannabivarin (CBV), tetrahydrocannabivarin (THCV), cannabidivarin 34
(CBDV), cannabicitran (CBT), delta-7 tetrahydrocannabinol (delta-7 THC), 35
delta-8 tetrahydrocannibinol (delta-8 THC), or delta-10 tetrahydrocannibinol 36
(delta-10 THC). This term also includes any synthetic cannabinoid derived 37
from hemp and contained in a hemp-derived consumable product. 38
(3) Hemp-derived consumable product. – A hemp product that is a finished good 39
intended for human ingestion or inhalation that contains a delta-9 THC 40
concentration of not more than three -tenths of one percent (0.3%) on a dry 41
weight basis , but may contain concentrations of other hemp-derived 42
cannabinoids, in excess of that amount . This term does no t include hemp 43
products intended for topical application, or seeds or seed-derived ingredients 44
that are generally recognized as safe by the United States Food and Drug 45
Administration (FDA). 46
(4) Hemp product. – As defined in G.S. 90-87. 47
(5) Ingestion. – The process of consuming through the mouth, by swallowing into 48
the gastrointestinal system or through tissue absorption. 49
(6) Inhalation. – The process of consuming into the respiratory system through 50
the mouth or nasal passages. 51
General Assembly Of North Carolina Session 2025
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(b) Prohibition. – Both of the following are unlawful: 1
(1) For any person to knowingly sell or give a hemp-derived consumable product 2
to a person who is under 21 years of age. A person engaged in the sale of 3
hemp-derived consumable product s shall demand proof of age from a 4
prospective purchaser if the person has reasonable grounds to believe that the 5
prospective purchaser is under 21 years of age. 6
(2) For any person who is under 21 years of age to possess a hemp -derived 7
consumable product. 8
(c) Punishment. – Any person who violates this section is guilt y of a Class 3 9
misdemeanor." 10
SECTION 6. Sections 1, 2, and 3 of this act become effective July 1, 2026, and apply 11
to all kratom products possessed, sold, distributed, or manufactured on or after that date, and to 12
all offenses committed on or after that date. Section 4 of this act is effective when it becomes law 13
and applies beginning with the 2025 -2026 school year. Section 5 of this act becomes effective 14
December 1, 2025, and applies to offenses committed on or after that date. The remainder of this 15
act is effective when it becomes law. 16