GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 468
Short Title: Regulate Kratom Products. (Public)
Sponsors: Representatives McNeely, Cotham, Chesser, and Campbell (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Agriculture and Environment, if favorable, Regulatory Reform, if favorable,
Finance, if favorable, Rules, Calendar, and Operations of the House
March 24, 2025
*H468 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REGULATE THE SALE AND DISTRIBUTION OF KRATOM PRODU CTS. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. The General Statutes are amended by adding a new Chapter to read: 4
"Chapter 18E. 5
"Regulation of Kratom Products. 6
"Article 1. 7
"Regulation of Kratom Products. 8
"§ 18E-100. Definitions. 9
Unless the context requires otherwise, the following definitions apply in this Chapter: 10
(1) ALE Division. – The Alcohol Law Enforcement Division of the Department 11
of Public Safety. 12
(2) Batch. – The kratom product produced during a period of time under similar 13
conditions and identified by a specific code that allows traceability. 14
(3) Distributor. – A person or entity that delivers or sells kratom products for the 15
purpose of distribution in commerce. 16
(4) Exit package. – An opaque bag or other similar opaque covering provided at 17
the point of sale that satisfies the child-resistant effectiveness standards under 18
16 C.F.R. § 1700.15(b)(1) when tested in accordance with the requirements 19
of 16 C.F.R. § 1700.20 in which kratom products are placed by a seller after 20
being sold to the ultimate consumer of the product. 21
(5) Independent testing laboratory. – A laboratory that meets all of the following 22
conditions: 23
a. Holds an ISO 17025 accreditation or is registered with the Drug 24
Enforcement Administration (DEA) in accordance with 21 C.F.R. § 25
1301.13. 26
b. Does not have a direct or indirect interest in the entity whose product 27
is being tested. 28
c. Does not have a direct or indirect interest in a facility that cultivates, 29
processes, distributes, dispenses, or sells kratom products in this State 30
or any other jurisdiction. 31
d. Has entered into a compliance agreement with the ALE Division to 32
conduct kratom product testing. 33 General Assembly Of North Carolina Session 2025
Page 2 House Bill 468-First Edition
(6) Ingestion. – The process of consuming kratom through the mouth, by 1
swallowing into the gastrointestinal system or through tissue absorption. 2
(7) Inhalation. – The process of consuming kratom into the respiratory system 3
through the mouth or nasal passages. 4
(8) Kratom product. – Any consumer commodity containing any quantity of 5
mitragynine or 7-hydroxymytragynine or both, extracted from the leaf of the 6
plant Mitragyna speciosa. This definition includes a synthesized kratom 7
product. 8
(9) License. – A license issued in accordance with this Chapter. 9
(10) Licensee. – A person who has been issued a license in accordance with this 10
Chapter. 11
(11) Manufacture. – To compound, blend, extract, infuse, cook, or otherwise 12
manipulate kratom to make, prepare, or package kratom products. 13
(12) Manufacturer. – Any person or entity that engages in the process of 14
manufacturing, preparing, or packaging of kratom products. 15
(13) Producer. – Any person or entity that engages in the process of farming and 16
harvesting kratom that is intended to be used in the manufacture of a kratom 17
product. 18
(14) Retail dealer. – Any person who sells a kratom product to the ultimate 19
consumer of the product, including a remote seller. 20
(15) Serving. – A quantity of a kratom product reasonably suitable for a person's 21
use in a single day. 22
(16) Synthesized kratom product. – An alkaloid, metabolite, or alkaloid derivative 23
that has been created by chemical synthesis or biosynthetic means, including, 24
but not limited to, fermentation, recombinant techniques, yeast derived, 25
enzymatic techniques, rather than traditional food preparation techniques, 26
such as heating or extracting, that synthetically alters the composition of any 27
kratom alkaloid or constituent. 28
"§ 18E-101. Sales restrictions on kratom products. 29
(a) Restriction. – No person shall do any of the following: 30
(1) Knowingly, or having reason to know, sell a kratom product to a person who 31
is under 21 years of age. Any retail dealer of kratom products shall demand 32
proof of age from a prospective purchaser of kratom products before the 33
kratom products are released to the purchaser if the retail dealer has reasonable 34
grounds to believe that the prospective purchaser is under 30 years of age. 35
Any retail dealer that sells a kratom product on an internet website shall verify 36
the age of any prospective purchaser and shall use a method of delivery that 37
requires the signature of a person at least 21 years of age before the kratom 38
product is released. 39
(2) Knowingly, or having reason to know, distribute samples of kratom products 40
in or on a public street, sidewalk, park, or public building. 41
(3) Engage in the business of selling a kratom product without a valid license 42
issued in accordance with this Chapter. 43
(4) Knowingly, or having reason to know, sell at retail a kratom product that 44
violates the provisions of G.S. 18E-104. 45
(5) Knowingly, or having reason to know, sell a kratom product that is not 46
contained in an exit package or a child proof package. 47
(6) Knowingly, or having reason to know, sell at retail or on an internet website 48
offering delivery in this State, a kratom product that is not in compliance with 49
G.S. 18E-105. 50 General Assembly Of North Carolina Session 2025
House Bill 468-First Edition Page 3
(b) Civil Penalties. – For any violation of this section, the ALE Division may take any of 1
the following actions against a retail dealer: 2
(1) For the first violation, the ALE Division may impose a civil penalty of no 3
more than five hundred dollars ($500.00). 4
(2) For the second violation within three years, the ALE Division may impose a 5
civil penalty of no more than seven hundred fifty dollars ($750.00). 6
(3) For the third violation within three years of the first violation, the ALE 7
Division shall impose a civil penalty of no more than one thousand dollars 8
($1,000) and suspend the retail dealer's license for one year. 9
(4) For a fourth or subsequent violation within three years of the first violation, 10
the ALE Division shall impose a civil penalty of no more than two thousand 11
dollars ($2,000) and revoke the retail dealer's license. 12
(c) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 13
a retail dealer's license, the ALE Division may accept from the retail dealer an offer in 14
compromise to pay a penalty of not more than three thousand dollars ($3,000). The ALE Division 15
may either accept a compromise or revoke a license, but not both. The ALE Division may accept 16
a compromise and suspend the license in the same case. 17
(d) Testing Fee. – In any case in which the ALE Division imposes a penalty pursuant to 18
subsection (b) of this section, for a violation of subdivision (4) of subsection (a) of this section, 19
the retail dealer shall also pay to the ALE Division the actual costs paid by the ALE Division for 20
testing of the samples resulting in the violation. Any fee collected pursuant to this subsection 21
shall be remitted to the ALE Division. 22
(e) Defenses. – It is a defense to a violation of subdivision (1) of subsection (a) of this 23
section if the retail dealer does any of the following: 24
(1) Shows that the purchaser produced a drivers license, a special identification 25
card issued under G.S. 20-37.7 or issued by the state agency of any other state 26
authorized to issue similar official state special identification cards for that 27
state, a tribal enrollment card issued by a State or federally recognized Indian 28
Tribe, a military identification card, or a passport showing the purchaser's age 29
to be at least the required age for purchase and bearing a physical description 30
of the person named on the card reasonably describing the purchaser. 31
(2) Produces evidence of other facts that reasonably indicated at the time of sale 32
that the purchaser was at least the required age. 33
(3) Shows that at the time of purchase, the purchaser utilized a biometric 34
identification system that demonstrated (i) the purchaser's age to be at least 35
the required age for the purchase and (ii) the purchaser had previously 36
registered with the retail dealer or retail dealer's agent a drivers license, a 37
special identification card issued under G.S. 20-37.7 or issued by the state 38
agency of any other state authorized to issue similar official state special 39
identification cards for that state, a military identification card, or a passport 40
showing the purchaser's date of birth and bearing a physical description of the 41
person named on the document. 42
(f) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 43
this section, including any penalty received as an offer in compromise, shall be remitted to the 44
Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 45
(g) Forfeiture. – Any product sold in violation of subdivision (4) of subsection (a) of this 46
section shall be subject to forfeiture pursuant to the procedures set forth in G.S. 18E-401. 47
(h) Criminal Penalty. – Any person against whom a civil penalty has been imposed for 48
violation of subdivision (3) of subsection (a) of this section who commits a second violation of 49
subdivision (3) of subsection (a) of this section is guilty of a Class A1 misdemeanor. Any person 50 General Assembly Of North Carolina Session 2025
Page 4 House Bill 468-First Edition
who commits a third or subsequent violation of subdivision (3) of subsection (a) of this section 1
is guilty of a Class H felony. 2
"§ 18E-101A. Sales and transfer restrictions on a producer. 3
(a) Restriction. – A producer shall not knowingly sell or in any way transfer kratom that 4
has been processed or prepared with the intent to be used in a kratom product to any person or 5
entity other than a manufacturer licensed pursuant to this Chapter. 6
(b) Civil Penalties. – Violation of this section shall have the following penalties: 7
(1) For the first violation, the ALE Division may impose a civil penalty of no 8
more than five hundred dollars ($500.00). 9
(2) For the second violation within three years, the ALE Division may impose a 10
civil penalty of no more than seven hundred fifty dollars ($750.00). 11
(3) For the third violation within three years of the first violation, the ALE 12
Division shall impose a civil penalty of no more than one thousand dollars 13
($1,000). 14
(4) For a fourth or subsequent violation within three years of the first violation, 15
the ALE Division shall impose a civil penalty of no more than two thousand 16
dollars ($2,000). 17
(c) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 18
this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with 19
G.S. 115C-457.2. 20
(d) Criminal Penalty. – Any person against whom a civil penalty has been imposed for 21
violation of this section who commits a second violation of this section is guilty of a Class A1 22
misdemeanor. Any person who commits a third or subsequent violation of this section is guilty 23
of a Class H felony. 24
(e) Applicability of this Section. – Nothing in this section shall be construed as 25
prohibiting a producer from selling or transferring kratom that is intended to be used in any lawful 26
product other than those regulated by this Chapter. 27
"§ 18E-102. Offenses involving the purchase, attempted purchase, or possession of kratom 28
products by a person under 21 years of age. 29
(a) It is unlawful for any person to give a kratom product to anyone less than 21 years 30
old without the consent of the underaged person's parent or legal guardian. 31
(b) It is unlawful for a person less than 21 years old to purchase or attempt to purchase a 32
kratom product. 33
(c) It is unlawful for any person to enter or attempt to enter a place where kratom products 34
are sold or consumed, or to obtain or attempt to obtain kratom products, or to obtain or attempt 35
to obtain permission to purchase kratom products, in violation of subsection (b) of this section, 36
by using or attempting to use any of the following: 37
(1) A fraudulent or altered drivers license. 38
(2) A fraudulent or altered identification document other than a drivers license. 39
(3) A drivers license issued to another person. 40
(4) An identification document other than a drivers license issued to another 41
person. 42
(5) Any other form or means of identification that indicates or symbolizes that the 43
person is not prohibited from purchasing or possessing a kratom product under 44
this section. 45
(d) It is unlawful for any person to permit the use of the person's drivers license or any 46
other form of identification of any kind issued or given to the person by any other person who 47
violates or attempts to violate subsection (b) of this section. 48
(e) Penalties. – 49
(1) Any person less than 21 years old who violates this section is guilty of a Class 50
2 misdemeanor. 51 General Assembly Of North Carolina Session 2025
House Bill 468-First Edition Page 5
(2) Any person at least 21 years old who violates this section is guilty of a Class 1
1 misdemeanor. 2
(3) Aiding or abetting a violation of this section shall be punished as provided in 3
subdivisions (1) and (2) of this subsection, and all other provisions of this 4
section shall apply to that offense. 5
(f) Nothing in this section prohibits an underage person from selling, transporting, or 6
possessing kratom products in the course of employment, if the employment of the person for 7
that purpose is lawful under applicable youth employment statutes. 8
"§ 18E-103. Offenses involving the manufacture and distribution of kratom products. 9
(a) Offenses. – It is unlawful for a manufacturer or distributor to do any of the following: 10
(1) Knowingly, or having reason to know, distribute samples of a kratom product 11
in or on a public street, sidewalk, park, or public building. 12
(2) Engage in the business of manufacturing or distributing a kratom product 13
without a valid license issued in accordance with this Chapter. 14
(3) Knowingly, or having reason to know, manufacture or distribute a kratom 15
product that violates the provisions of G.S. 18E-104. 16
(b) Criminal Penalties. – A violation of this section is a Class A1 misdemeanor. 17
(c) Civil Penalties. – In addition to any criminal punishment authorized by this section, 18
for any violation of this section the ALE Division shall take one or more of the following actions 19
against the licensee: 20
(1) Suspend the licensee's license for a specified period of time not longer than 21
three years. 22
(2) Revoke the licensee's license. 23
(3) Impose conditions on the operating hours of the licensee's business. 24
(4) Impose civil penalties as follows: 25
a. For a first violation, impose a civil penalty of no more than one 26
thousand dollars ($1,000). 27
b. For a second violation within three years, impose a civil penalty of no 28
more than five thousand dollars ($5,000). 29
c. For a third violation within three years of the first violation, impose a 30
civil penalty of no more than seven thousand five hundred dollars 31
($7,500). 32
(d) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 33
a manufacturer's or distributor's license, the ALE Division may accept from the manufacturer or 34
distributor an offer in compromise to pay a penalty of not more than eight thousand dollars 35
($8,000). The ALE Division may either accept a compromise or revoke a license, but not both. 36
The ALE Division may accept a compromise and suspend the license in the same case. 37
(e) Testing Fee. – In any case in which the ALE Division imposes a penalty pursuant to 38
subsection (c) of this section, for a violation of subdivision (3) of subsection (a) of this section, 39
the manufacturer or distributor shall also pay to the ALE Division the actual costs paid by the 40
ALE Division for testing of the samples resulting in the violation. Any fee collected pursuant to 41
this subsection shall be remitted to the ALE Division. 42
(f) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 43
this section, including any penalty received as an offer in compromise, shall be remitted to the 44
Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 45
(g) Forfeiture. – Any product sold in violation of subdivision (3) of subsection (a) of this 46
section shall be subject to forfeiture pursuant to the procedures set forth in G.S. 18E-301. 47
"§ 18E-104. Testing prior to distribution. 48
(a) Requirement. – The manufacturer shall have a kratom product tested prior to 49
distribution to a distributor or before distributing the product to a retail dealer. If the kratom 50
product is packaged in a manner that may be sold to the ultimate consumer of the product when 51 General Assembly Of North Carolina Session 2025
Page 6 House Bill 468-First Edition
delivered to the distributor and the distributor does not open such package, the distributor is not 1
required to test the kratom product. If the kratom product is not packaged in a manner that may 2
be sold to the ultimate consumer of the product when delivered to the distributor or the distributor 3
does open such package, the distributor shall have the kratom product tested prior to distribution. 4
The testing shall determine the presence and amounts of any of the substances listed in subsection 5
(b) of this section. No product that contains more than the maximum amount indicated for any 6
substance in subsection (b) of this section shall be distributed or sold in this State. 7
(b) Substances Tested; Limitations. – A kratom manufacturer, distributor, or retail dealer 8
shall not prepare, manufacture, distribute, or offer for sale any of the following: 9
(1) A kratom product that is adulterated with a dangerous non-kratom substance. 10
A kratom product is adulterated with a dangerous non-kratom substance if the 11
kratom product is mixed or packed with a non-kratom substance and that 12
substance affects the quality or strength of the kratom product to such a degree 13
as to render the kratom product injurious to a consumer. 14
(2) A kratom product that is contaminated with a dangerous non-kratom 15
substance. A kratom product is contaminated with a dangerous non-kratom 16
substance if the kratom product contains a poisonous or otherwise deleterious 17
non-kratom ingredient, including any controlled substance regulated by 18
Article 5 of Chapter 90 of the General Statutes. 19
(3) A kratom extract that contains levels of residual solvents higher than is 20
allowed in the U.S. Pharmacopeia 467. 21
(4) A kratom product containing a level of 7-hydroxymitragynine in the alkaloid 22
fraction that is greater than two percent (2%) or 0.4 mg on a dry matter basis 23
of the overall alkaloid composition of the product. 24
(5) A kratom product containing any synthetic alkaloids, including synthetic 25
mitragynine, synthetic 7-hydroxymitragynine, or any other synthetically 26
derived compounds of the kratom plant. 27
(6) A kratom product that does not provide adequate labeling directions necessary 28
for safe use by consumers, including a recommended serving size, the 29
recommended number of servings per day, and the number of servings in the 30
package that is sold. 31
(7) A kratom product in any form that is combustible, intended to be used for 32
vaporization, or injectable. 33
(8) A synthesized kratom product. 34
(c) Laboratory Qualifications. – A manufacturer or distributor shall contract with an 35
independent testing laboratory to provide the testing required under subsection (a) of this section. 36
(d) Testing Method. – A laboratory providing testing required under subsection (a) of this 37
section shall use high-performance liquid chromatography for any separation and measurement 38
required in the testing. 39
(e) Batch Testing. – A sample of each batch manufactured shall undergo the testing 40
required by subsection (a) of this section and shall obtain a certificate of analysis by an 41
independent testing laboratory. The size of sample required to be tested shall be determined by 42
the size of the batch as follows: 43
(1) For a batch containing 1 to 999 units, the required sample size is 1 unit. 44
(2) For a batch containing 1,000 to 4,999 units, the required sample size is 2 units. 45
(3) For a batch containing 5,000 to 9,999 units, the required sample size is 3 units. 46
(4) For a batch containing 10,000 or more units, the required sample size is 5 47
units. 48
(f) Expiration Date. – A kratom product shall have an expiration date on the label that 49
conforms with applicable federal law. 50 General Assembly Of North Carolina Session 2025
House Bill 468-First Edition Page 7
(g) Civil Penalties. – A violation of this section shall result in the ALE Division taking 1
one or more of the following actions against the licensee: 2
(1) Suspend the licensee's license for a specified period of time not longer than 3
three years. 4
(2) Revoke the licensee's license. 5
(3) Impose conditions on the operating hours of the licensee's business. 6
(4) Impose civil penalties as follows: 7
a. For a first violation, impose a civil penalty of no more than one 8
thousand dollars ($1,000). 9
b. For a second violation within three years, impose a civil penalty of no 10
more than five thousand dollars ($5,000). 11
c. For a third violation within three years of the first violation, impose a 12
civil penalty of no more than seven thousand five hundred dollars 13
($7,500). 14
(h) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 15
a manufacturer's or distributor's license, the ALE Division may accept from the manufacturer or 16
distributor an offer in compromise to pay a penalty of not more than eight thousand dollars 17
($8,000). The ALE Division may either accept a compromise or revoke a license, but not both. 18
The ALE Division may accept a compromise and suspend the license in the same case. 19
(i) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 20
this section, including any penalty received as an offer in compromise, shall be remitted to the 21
Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 22
(j) ALE Division Duties. – The ALE Division shall do all of the following: 23
(1) Maintain and post on its website a list of testing laboratories that meet the 24
independent testing laboratory standard to test intermediate manufactured 25
material and finished kratom products. 26
(2) Develop an application and process to determine qualifying laboratories to be 27
listed on the ALE Division's website. The application shall require a 28
potentially qualifying laboratory to submit a sample certificate of analysis 29
issued by the applying laboratory indicating that the laboratory is capable of 30
detecting the chemicals provided in subsection (b) of this section. 31
"§ 18E-105. Additional requirements for manufacturers and distributors. 32
(a) Registration of Products. – All manufacturers and distributors shall register with the 33
ALE Division all kratom products offered for sale in this State by the manufacturer or distributor. 34
The registration shall include any information that the ALE Division deems necessary to ensure 35
compliance with the provisions of this Chapter. 36
(b) Adverse Event Reports. – A manufacturer or distributor, upon receipt of any adverse 37
event report related to a product manufactured or distributed by that manufacturer or distributor, 38
shall submit a copy of the adverse event report, as required under 21 U.S.C. § 379aa-1, to the 39
ALE Division within 30 days. If the manufacturer or distributor does not submit a copy of the 40
adverse event report within the time allotted, the registration for that product shall be revoked 41
and the license for that manufacturer or distributor shall be suspended or revoked, at the 42
discretion of the ALE Division. 43
(c) Packaging Requirements. – A kratom product that is sold in this State shall meet both 44
of the following requirements: 45
(1) The product shall satisfy the child-resistant effectiveness standards under 16 46
C.F.R. § 1700.15(b)(1) when tested in accordance with the requirements of 16 47
C.F.R. § 1700.20. 48
(2) The product shall be labeled with consumer protection warnings in the form 49
of statements that cover all of the following: 50 General Assembly Of North Carolina Session 2025
Page 8 House Bill 468-First Edition
a. A list of ingredients and possible allergens and a nutritional fact panel 1
or a quick response code that can be scanned that directs consumers to 2
a website containing the list of ingredients and possible allergens and 3
a nutritional fact panel. 4
b. A statement that use while pregnant or breastfeeding may be harmful. 5
c. A statement that consumption of certain kratom products may impair 6
your ability to drive and operate heavy machinery. 7
d. A statement that the product is not approved by the United States Food 8
and Drug Administration. 9
e. A statement to keep out of reach of children. 10
f. A statement to consult your physician before use. 11
g. The net weight of the product. 12
h. An expiration date in accordance with applicable federal law. 13
i. A listing of kratom alkaloids and other ingredients in the product. 14
j. The recommended serving size. 15
(d) Advertising Restrictions. – A manufacturer, distributor, or retail dealer of a kratom 16
product shall not advertise, market, or offer for sale the product by using, in the labeling or design 17
of the product or product packaging or in advertising or marketing materials for the product trade 18
dress, trademarks, branding, or other related materials, any imagery or scenery that depicts or 19
signifies characters or symbols known to appeal primarily to persons under 21 years of age, 20
including, but not limited to, superheroes, comic book characters, video game characters, 21
television show characters, movie characters, mythical creatures, unicorns, animals, cartoon 22
characters, or any imitation of the packaging or labeling of candy, cereals, sweets, chips, or other 23
food products typically marketed to persons under 21 years of age. 24
"§ 18E-105.1. Conduct on licensed premises. 25
(a) Certain Conduct. – It shall be unlawful for a licensee or the licensee's agent or 26
employee to knowingly allow any of the following kinds of conduct to occur on the licensed 27
premises: 28
(1) Any violation of this Chapter. 29
(2) Any violation of the controlled substances, gambling, or any other unlawful 30
acts. 31
(b) Supervision. – It shall be unlawful for a licensee to fail to superintend in person or 32
through a manager the business for which a license is issued. 33
"§ 18E-105.2. Safe harbor protection for goods not sold in State. 34
(a) This Chapter shall not apply to the following: 35
(1) A safe harbor kratom product. 36
(2) A safe harbor manufacturer or storage facility. 37
(b) For the purposes of this section, a "Safe Harbor Kratom Product" means kratom, 38
whether a finished product or in the process of being produced, that is permitted to be 39
manufactured for distribution, produced for distribution, packaged for distribution, processed for 40
distribution, prepared for distribution, treated for distribution, transported for distribution, or held 41
for distribution in North Carolina for export from North Carolina but that is not permitted to be 42
sold or distributed in North Carolina. 43
(c) For the purposes of this section, a "Safe Harbor Manufacturer or Storage Facility" 44
means a facility that manufactures for distribution, produces for distribution, packages for 45
distribution, processes for distribution, prepares for distribution, treats for distribution, transports 46
for distribution, or holds for distribution a Safe Harbor Kratom Product. 47
"§ 18E-106. Construction of Chapter. 48
Nothing in this Chapter shall be construed to do any of the following: 49
(1) Permit a person to undertake any task under the influence of a kratom product 50
when doing so would constitute negligence or professional malpractice. 51 General Assembly Of North Carolina Session 2025
House Bill 468-First Edition Page 9
(2) Permit a person to operate, navigate, or be in actual physical control of a motor 1
vehicle, aircraft, motorized watercraft, or any other vehicle while under the 2
influence of a kratom product. 3
(3) Require an employer to accommodate the use of a kratom product in a 4
workplace or an employee working while under the influence of a kratom 5
product. 6
(4) Require an individual or establishment in lawful possession of property to 7
admit a guest, client, customer, or other visitor who is impaired as a result of 8
the person's use of a kratom product. 9
(5) Exempt a person from prosecution for a criminal offense related to impairment 10
or intoxication resulting from the use of a kratom product or relieve a person 11
from any requirement under law to submit to a breath, blood, urine, or other 12
test to detect the presence of a controlled substance. 13
(6) Limit the ability of an employer to establish, continue, or enforce a drug-free 14
workplace program or policy. 15
(7) Create a cause of action against an employer for wrongful discharge or 16
discrimination. 17
(8) Allow the possession, sale, manufacture, or distribution of any substance that 18
is otherwise prohibited by Article 5 of Chapter 90 of the General Statutes. 19
"Article 2. 20
"Licensing. 21
"§ 18E-200. Definitions. 22
The definitions contained in Article 1 of this Chapter apply to this Article as appropriate. 23
"§ 18E-201. Licensing requirements; qualifications; duration. 24
(a) Requirement. – Prior to the commencement of business or by July 1, 2026, whichever 25
is later, a person or entity engaged in this State in any business regulated by this Chapter and 26
listed in this subsection shall obtain a license to engage in that business from the ALE Division. 27
Businesses engaging in one or more of the following are required to obtain a license pursuant to 28
this section: 29
(1) Manufacturing kratom products. 30
(2) Distributing kratom products. 31
(3) Selling kratom products. 32
(b) Qualifications. – In order to obtain and maintain a license under subsection (a) of this 33
section, a person shall meet all of the following criteria: 34
(1) Be at least 21 years old. 35
(2) Submit to the ALE Division any information determined by the ALE Division 36
to be necessary for the efficient enforcement of this Chapter. 37
(3) Have not been convicted of a felony relating to a controlled substance within 38
10 years in any state or federal jurisdiction. 39
(4) Consent to reasonable inspection by the ALE Division of the inventory of 40
products regulated by this Chapter to ensure compliance with this Chapter and 41
the taking of samples found to not be in compliance with the packaging, 42
labeling, and testing requirements of this section. 43
(5) Be current in filing all applicable tax returns to the State and in payment of all 44
taxes, interest, and penalties collectable pursuant to G.S. 105-241.22. 45
(c) Single License Required. – A person or entity engaged in more than one of the 46
businesses listed in subsection (a) of this section shall only be required to obtain a single license. 47
Upon application for a license, the person or entity engaged in more than one type of business 48
regulated by this Chapter must indicate on the license application all of the businesses listed in 49
subsection (a) of this section in which the business engages or intends to engage. A person or 50 General Assembly Of North Carolina Session 2025
Page 10 House Bill 468-First Edition
entity applying for a license for more than one type of business listed in subsection (a) of this 1
section shall pay a single fee as provided in G.S. 18E-202(c). 2
(d) Duration. – A license issued pursuant to this Article is valid for a period of one year 3
and shall be renewed annually. 4
"§ 18E-202. Fees. 5
(a) Application Fee. – The application fee for a license required pursuant to this Article 6
shall be as follows: 7
(1) For a license to manufacture kratom products, a fee of fifteen thousand dollars 8
($15,000). However, if an applicant submits proof that the applicant's gross 9
income for the calendar year prior to application was less than one hundred 10
thousand dollars ($100,000), the fee shall be one thousand dollars ($1,000). 11
(2) For a license to distribute kratom products, a fee of two thousand five hundred 12
dollars ($2,500). However, if an applicant submits proof that the applicant's 13
gross income for the calendar year prior to application was less than one 14
hundred thousand dollars ($100,000), the fee shall be seven hundred fifty 15
dollars ($750.00). 16
(3) For a license to sell kratom products at a retail location, or online for delivery 17
to a person within this State, a fee of two hundred fifty dollars ($250.00) for 18
each location or each internet website offering delivery in this State. However, 19
a single entity with more than 25 locations, internet websites offering delivery 20
in this State, or a combination of the two shall not pay more than five thousand 21
dollars ($5,000) and shall submit a list of all locations and all internet websites 22
offering delivery in this State to the ALE Division. 23
(b) Renewal Fee. – The renewal fee for a license issued pursuant to this Article shall be 24
as follows: 25
(1) For a license to manufacture kratom products, a renewal fee of five thousand 26
dollars ($5,000). 27
(2) For a license to distribute kratom products, a renewal fee of seven hundred 28
fifty dollars ($750.00). 29
(3) For a license to sell kratom products at a retail location or online for delivery 30
to a person within this State, a renewal fee in the same amount as the initial 31
licensing fees established under subsection (a) of this section. 32
(c) For an application for or renewal of a license to engage in more than one business 33
listed in subsection (a) of G.S. 18E-201, the fee shall be the highest fee of those prescribed for 34
the types of business indicated on the application or renewal, as applied to that applicant or 35
licensee. 36
"§ 18E-203. ALE Division authority to deny or revoke. 37
The ALE Division may revoke or refuse to issue any license for any of the following: 38
(1) Failure to comply with or meet any of the qualifications required by 39
G.S. 18E-201(b). 40
(2) Submission of false or misleading information in an application for licensure 41
or renewal. 42
(3) Submission of false or misleading information in any report or information 43
required by this Chapter to be submitted to the ALE Division. 44
(4) Failure to comply with civil penalties authorized by this Chapter. 45
"§ 18E-204. Civil penalties; procedure. 46
Proceedings for the assessment of civil penalties authorized in Article 1 of this Chapter shall 47
be governed by Chapter 150B of the General Statutes. If the person or entity assessed a civil 48
penalty fails to pay the penalty to the ALE Division, the ALE Division may institute an action in 49
the superior court of the county in which the person resides or has their principal place of business 50 General Assembly Of North Carolina Session 2025
House Bill 468-First Edition Page 11
to recover the unpaid amount of the penalty. An action to recover a civil penalty under this 1
Chapter shall not relieve any party from any other penalty prescribed by law. 2
"§ 18E-205. ALE Division to develop application, adopt rules, remit revenue. 3
(a) License Application. – The ALE Division shall develop and make available online an 4
application for the license required by this Article. 5
(b) Rules. – The ALE Division shall have authority to adopt, amend, and repeal rules to 6
carry out the provisions of this Chapter. 7
(c) Distribution of Revenue. – The revenue collected from fees established under this 8
Chapter shall be remitted to the ALE Division, on a monthly basis, to be used to cover costs 9
incurred by the ALE Division in enforcing the provisions of this Chapter. To the extent the funds 10
described in this subsection are deemed unappropriated, the funds are hereby appropriated for 11
the purpose set forth in this subsection. 12
"Article 3. 13
"Enforcement. 14
"§ 18E-300. ALE Division. 15
(a) Authority. – The ALE Division shall enforce the provisions of this Chapter in a 16
manner that is reasonable to reduce the extent to which kratom products are sold or distributed 17
to persons under 21 years of age and shall conduct random, unannounced inspections at locations 18
where kratom products are sold or distributed to ensure compliance with the provisions of this 19
Chapter. If, upon reasonable inspection, the ALE Division determines a licensee's inventory may 20
consist of products not in compliance with the packaging, labeling, and testing requirements of 21
this Chapter, the ALE Division is authorized to only take samples of a licensee's inventory of 22
kratom products considered noncompliant to be submitted for testing in order to determine 23
compliance with the provisions of this Chapter. To procure evidence of violations of this Chapter, 24
ALE Division agents shall have authority to investigate the operation of each licensee under this 25
Chapter and each licensed premises for which a license has been issued under this Chapter, to 26
make inspections that include viewing the entire premises, including the examination of records, 27
equipment, and proceeds related to the manufacture or distribution of kratom products. The 28
inspection authorized by this section may be made at any time it reasonably appears that someone 29
is on the premises. 30
(b) Interference with Inspection. – Refusal by a licensee or by any employee of a licensee 31
to permit ALE Division agents to enter the premises to make an inspection authorized by 32
subsection (a) of this section shall be cause for suspension, revocation, or other action against the 33
licensee. It shall be a Class 2 misdemeanor for any person to resist or obstruct an agent attempting 34
to make a lawful inspection under this section. 35
(c) Report. – Beginning January 1, 2027, the ALE Division shall submit an annual report 36
to the General Assembly describing in detail the ALE Division's enforcement efforts under this 37
Chapter. The ALE Division shall also make the report required under this subsection available 38
on the ALE Division's website. 39
"§ 18E-301. Forfeiture of property. 40
(a) Seizure of Product. – For any kratom product subject to forfeiture, a law enforcement 41
officer is hereby authorized and empowered to seize and take possession of such products. 42
(b) Custody until Trial. – A law enforcement officer seizing a product subject to forfeiture 43
shall provide for its safe storage until trial. 44
(c) Disposition after Criminal Trial. – The presiding judge in a criminal proceeding for 45
violation of G.S. 18E-103(a)(3) may take the following actions after resolution of a charge 46
against the owner or possessor of products subject to forfeiture under this section: 47
(1) If the owner or possessor of the product is found guilty of a violation of 48
G.S. 18E-103(a)(3), the judge shall order the product forfeited. 49 General Assembly Of North Carolina Session 2025
Page 12 House Bill 468-First Edition
(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) Disposition after Civil Forfeiture Proceeding. – Violations of G.S. 18E-101(a)(4) 8
shall be subject to forfeiture under the procedure set forth in G.S. 75D-5. 9
(e) Disposition of Forfeited Product. – Notwithstanding G.S. 75D-5(j), a judge ordering 10
forfeiture of property shall order the product destroyed. 11
(f) Return of Property. – Any owner of products seized for forfeiture may apply to a 12
judge to have the products returned to the owner if no criminal charge has been made or no action 13
for civil forfeiture has been commenced in connection with that product within a reasonable time 14
after seizure. The judge may not order the return of the product if possession by the owner would 15
be unlawful." 16
SECTION 2. G.S. 18B-500(b) reads as rewritten: 17
"(b) Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an 18
alcohol law-enforcement agent shall have authority to arrest and take other investigatory and 19
enforcement actions for any criminal offense: 20
(1) Occurring, encountered, or otherwise discovered on the premises of, or 21
elsewhere when the conduct relates to, a location under application for or 22
holding a permit issued by the North Carolina Alcoholic Beverage Control 23
Commission or the North Carolina Education Lottery Commission. 24
(1b) Occurring, encountered, or otherwise discovered on the premises of, or 25
elsewhere when the conduct relates to, a location holding a license issued 26
pursuant to Chapter 18E of the General Statutes. 27
(2) Encountered or otherwise discovered while investigating or enforcing matters 28
for the North Carolina Alcoholic Beverage Control Commission or the North 29
Carolina Education Lottery Commission or encountered or otherwise 30
discovered while investigating or enforcing the provisions of this Chapter, 31
Chapter 18C of the General Statutes, Chapter 18E of the General Statutes, 32
G.S. 14-313, or Parts 1 and 2 of Article 37 of Chapter 14 of the General 33
Statutes. 34
(3) Encountered or otherwise discovered while carrying out any duty or function 35
assigned to the Division by law. 36
(4) Occurring in an agent's presence. 37
(5) When assisting another law enforcement agency." 38
SECTION 3. G.S. 7A-304(a) reads as rewritten: 39
"(a) In every criminal case in the superior or district court, wherein the defendant is 40
convicted, or enters a plea of guilty or nolo contendere, or when costs are assessed against the 41
prosecuting witness, the following costs shall be assessed and collected. No costs may be 42
assessed when a case is dismissed. Only upon entry of a written order, supported by findings of 43
fact and conclusions of law, determining that there is just cause, the court may (i) waive costs 44
assessed under this section or (ii) waive or reduce costs assessed under subdivision (7), (8), (8a), 45
(11), (12), or (13) of this section. No court may waive or remit all or part of any court fines or 46
costs without providing notice and opportunity to be heard by all government entities directly 47
affected. The court shall provide notice to the government entities directly affected of (i) the date 48
and time of the hearing and (ii) the right to be heard and make an objection to the remission or 49
waiver of all or part of the order of court costs at least 15 days prior to hearing. Notice shall be 50 General Assembly Of North Carolina Session 2025
House Bill 468-First Edition Page 13
made to the government entities affected by first-class mail to the address provided for receipt of 1
court costs paid pursuant to the order. The costs referenced in this subsection are listed below: 2
… 3
(15) For the services of any laboratory facility, the district or superior court judge 4
shall, upon conviction, order payment of the sum of six hundred dollars 5
($600.00) to be remitted to the Alcohol Law Enforcement Division of the 6
Department of Public Safety (ALE Division) or agency that paid for the 7
laboratory services. The cost shall be assessed only in cases in which (i) the 8
defendant is convicted of a violation of G.S. 18E-103(a)(3) and (ii) as part of 9
the investigation leading to the defendant's conviction, testing was conducted 10
at a laboratory on products regulated under Chapter 18E of the General 11
Statutes." 12
SECTION 4. This act becomes effective July 1, 2026, and applies to all kratom 13
products possessed, sold, distributed, or manufactured on or after that date, and to all offenses 14
committed on or after that date. 15