North Carolina 2025-2026 Regular Session

North Carolina House Bill H607 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 607
	3	+	H D
	4	+	HOUSE BILL DRH10282-CEf-4
	5	+
5	6
6	7
7	8		Short Title: Regulate Hemp Consumable Products. (Public)
8		-	Sponsors: Representatives McNeely and Chesser (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Rules, Calendar, and Operations of the House
11		-	April 1, 2025
12		-	H607 -v-1
	9	+	Sponsors: Representative McNeely.
	10	+	Referred to:
	11	+
	12	+	DRH10282 -CEf-4
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO REGULATE THE SALE AND DISTRIBUTION OF HEMP -DERIVED 2
15	15		CONSUMABLE PRODUCTS. 3
16	16		The General Assembly of North Carolina enacts: 4
17	17		SECTION 1.(a) The General Statutes are amended by adding a new Chapter to read: 5
18	18		"Chapter 18D. 6
19	19		"Regulation of Hemp-Derived Consumable Products. 7
20	20		"Article 1. 8
21	21		"Regulation of Hemp-Derived Consumable Products. 9
22	22		"§ 18D-100. Definitions. 10
23	23		Unless the context requires otherwise, the following definitions apply in this Chapter: 11
24	24		(1) ALE Division. – The Alcohol Law Enforcement Division of the Department 12
25	25		of Public Safety. 13
26	26		(2) Batch. – The hemp-derived consumable product produced during a period of 14
27	27		time under similar conditions and identified by a specific code that allows 15
28	28		traceability. 16
29	29		(3) Distributor. – A person or entity that delivers or sells hemp-derived 17
30	30		consumable products for the purpose of distribution in commerce. 18
31	31		(4) Exit package. – An opaque bag or other similar opaque covering provided at 19
32	32		the point of sale that satisfies the child-resistant effectiveness standards under 20
33	33		16 C.F.R. § 1700.15(b)(1) when tested in accordance with the requirements 21
34	34		of 16 C.F.R. § 1700.20 in which hemp-derived consumable products are 22
35	35		placed by a seller after being sold to the ultimate consumer of the product. 23
36	36		(5) Hemp. – As defined in G.S. 90-87. 24
37	37		(6) Hemp-derived cannabinoid. – Any phytocannabinoid found in hemp, 25
38	38		including delta-9 tetrahydrocannabinol (delta-9 THC), tetrahydrocannabinolic 26
39	39		acid (THCA), cannabidiol (CBD), cannabidiolic acid (CBDA), cannabinol 27
40	40		(CBN), cannabigerol (CBG), cannabichromene (CBC), cannabicyclol (CBL), 28
41	41		cannabivarin (CBV), tetrahydrocannabivarin (THCV), cannabidivarin 29
42	42		(CBDV), cannabicitran (CBT), delta-7 tetrahydrocannabinol (delta-7 THC), 30
43	43		delta-8 tetrahydrocannibinol (delta-8 THC), or delta-10 tetrahydrocannibinol 31
44	44		(delta-10 THC). This term also includes any synthetic cannabinoid derived 32
45	45		from hemp and contained in a hemp-derived consumable product. 33
46	46		(7) Hemp-derived consumable product. – A hemp product that is a finished good 34
47		-	intended for human ingestion or inhalation that contains a delta-9 THC 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 607-First Edition
49		-	concentration of not more than three-tenths of one percent (0.3%) on a dry 1
50		-	weight basis, but may contain concentrations of other hemp-derived 2
51		-	cannabinoids, in excess of that amount. This term does not include hemp 3
52		-	products intended for topical application, or seeds or seed-derived ingredients 4
53		-	that are generally recognized as safe by the United States Food and Drug 5
54		-	Administration (FDA). 6
55		-	(8) Hemp product. – As defined in G.S. 90-87. 7
56		-	(9) Independent testing laboratory. – A laboratory that meets all of the following 8
57		-	conditions: 9
58		-	a. Holds an ISO 17025 accreditation or is registered with the Drug 10
59		-	Enforcement Administration (DEA) in accordance with 21 C.F.R. § 11
60		-	1301.13. 12
61		-	b. Does not have a direct or indirect interest in the entity whose product 13
62		-	is being tested. 14
63		-	c. Does not have a direct or indirect interest in a facility that cultivates, 15
64		-	processes, distributes, dispenses, or sells hemp-derived consumable 16
65		-	products in this State or any other jurisdiction. 17
66		-	d. Has entered into a compliance agreement with the ALE Division to 18
67		-	conduct tetrahydrocannabinol concentration sampling and testing 19
68		-	using the high-performance chromatography (HPLC) testing method. 20
69		-	(10) Ingestion. – The process of consuming hemp through the mouth, by 21
70		-	swallowing into the gastrointestinal system or through tissue absorption. 22
71		-	(11) Inhalation. – The process of consuming hemp into the respiratory system 23
72		-	through the mouth or nasal passages. 24
73		-	(12) License. – A license issued in accordance with this Chapter. 25
74		-	(13) Licensee. – A person who has been issued a license in accordance with this 26
75		-	Chapter. 27
76		-	(14) Manufacture. – To compound, blend, extract, infuse, cook, or otherwise 28
77		-	manipulate hemp or a hemp-derived cannabinoid to make, prepare, or package 29
78		-	hemp-derived consumable products. 30
79		-	(15) Manufacturer. – Any person or entity that engages in the process of 31
80		-	manufacturing, preparing, or packaging of hemp-derived consumable 32
81		-	products. 33
82		-	(16) Producer. – Any person or entity that engages in the process of farming and 34
83		-	harvesting hemp that is intended to be used in the manufacture of a 35
84		-	hemp-derived consumable product. 36
85		-	(17) Retail dealer. – Any person who sells a hemp-derived consumable product to 37
86		-	the ultimate consumer of the product, including a remote seller. 38
87		-	(18) Serving. – A quantity of a hemp-derived consumable product reasonably 39
88		-	suitable for a person's use in a single day. 40
89		-	"§ 18D-101. Sales restrictions on hemp-derived consumable products. 41
90		-	(a) Restrictions. – No person shall do any of the following: 42
91		-	(1) Knowingly, or having reason to know, sell a hemp-derived consumable 43
92		-	product to a person who is under 21 years of age. Any retail dealer of 44
93		-	hemp-derived consumable products shall demand proof of age from a 45
94		-	prospective purchaser of hemp-derived consumable products before the 46
95		-	hemp-derived consumable products are released to the purchaser if the retail 47
96		-	dealer has reasonable grounds to believe that the prospective purchaser is 48
97		-	under 30 years of age. Any retail dealer that sells a hemp-derived consumable 49
98		-	product on an internet website shall verify the age of any prospective 50
99		-	purchaser and shall use a method of delivery that requires the signature of a 51 General Assembly Of North Carolina Session 2025
100		-	House Bill 607-First Edition Page 3
	47	+	intended for human ingestion or inhalation that contains a delta-9 THC 35
	48	+	concentration of not more than three-tenths of one percent (0.3%) on a dry 36
	49	+	H.B. 607
	50	+	Mar 31, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH10282-CEf-4
	53	+	weight basis, but may contain concentrations of other hemp-derived 1
	54	+	cannabinoids, in excess of that amount. This term does not include hemp 2
	55	+	products intended for topical application, or seeds or seed-derived ingredients 3
	56	+	that are generally recognized as safe by the United States Food and Drug 4
	57	+	Administration (FDA). 5
	58	+	(8) Hemp product. – As defined in G.S. 90-87. 6
	59	+	(9) Independent testing laboratory. – A laboratory that meets all of the following 7
	60	+	conditions: 8
	61	+	a. Holds an ISO 17025 accreditation or is registered with the Drug 9
	62	+	Enforcement Administration (DEA) in accordance with 21 C.F.R. § 10
	63	+	1301.13. 11
	64	+	b. Does not have a direct or indirect interest in the entity whose product 12
	65	+	is being tested. 13
	66	+	c. Does not have a direct or indirect interest in a facility that cultivates, 14
	67	+	processes, distributes, dispenses, or sells hemp-derived consumable 15
	68	+	products in this State or any other jurisdiction. 16
	69	+	d. Has entered into a compliance agreement with the ALE Division to 17
	70	+	conduct tetrahydrocannabinol concentration sampling and testing 18
	71	+	using the high-performance chromatography (HPLC) testing method. 19
	72	+	(10) Ingestion. – The process of consuming hemp through the mouth, by 20
	73	+	swallowing into the gastrointestinal system or through tissue absorption. 21
	74	+	(11) Inhalation. – The process of consuming hemp into the respiratory system 22
	75	+	through the mouth or nasal passages. 23
	76	+	(12) License. – A license issued in accordance with this Chapter. 24
	77	+	(13) Licensee. – A person who has been issued a license in accordance with this 25
	78	+	Chapter. 26
	79	+	(14) Manufacture. – To compound, blend, extract, infuse, cook, or otherwise 27
	80	+	manipulate hemp or a hemp-derived cannabinoid to make, prepare, or package 28
	81	+	hemp-derived consumable products. 29
	82	+	(15) Manufacturer. – Any person or entity that engages in the process of 30
	83	+	manufacturing, preparing, or packaging of hemp-derived consumable 31
	84	+	products. 32
	85	+	(16) Producer. – Any person or entity that engages in the process of farming and 33
	86	+	harvesting hemp that is intended to be used in the manufacture of a 34
	87	+	hemp-derived consumable product. 35
	88	+	(17) Retail dealer. – Any person who sells a hemp-derived consumable product to 36
	89	+	the ultimate consumer of the product, including a remote seller. 37
	90	+	(18) Serving. – A quantity of a hemp-derived consumable product reasonably 38
	91	+	suitable for a person's use in a single day. 39
	92	+	"§ 18D-101. Sales restrictions on hemp-derived consumable products. 40
	93	+	(a) Restrictions. – No person shall do any of the following: 41
	94	+	(1) Knowingly, or having reason to know, sell a hemp-derived consumable 42
	95	+	product to a person who is under 21 years of age. Any retail dealer of 43
	96	+	hemp-derived consumable products shall demand proof of age from a 44
	97	+	prospective purchaser of hemp-derived consumable products before the 45
	98	+	hemp-derived consumable products are released to the purchaser if the retail 46
	99	+	dealer has reasonable grounds to believe that the prospective purchaser is 47
	100	+	under 30 years of age. Any retail dealer that sells a hemp-derived consumable 48
	101	+	product on an internet website shall verify the age of any prospective 49
	102	+	purchaser and shall use a method of delivery that requires the signature of a 50 General Assembly Of North Carolina Session 2025
	103	+	DRH10282-CEf-4 Page 3
101	104		person at least 21 years of age before the hemp-derived consumable product 1
102	105		is released. 2
103	106		(2) Knowingly, or having reason to know, distribute samples of hemp-derived 3
104	107		consumable products in or on a public street, sidewalk, park, or public 4
105	108		building. 5
106	109		(3) Engage in the business of selling a hemp-derived consumable product without 6
107	110		a valid license issued in accordance with this Chapter. 7
108	111		(4) Knowingly, or having reason to know, sell a hemp-derived consumable 8
109	112		product that has a concentration of more than three-tenths of one percent 9
110	113		(0.3%) on a dry weight basis of delta-9 tetrahydrocannabinol. 10
111	114		(5) Knowingly, or having reason to know, sell a hemp-derived consumable 11
112	115		product that is not contained in an exit package or a child proof package. 12
113	116		(6) Knowingly, or having reason to know, sell at retail or on an internet website 13
114	117		offering delivery in this State, a hemp-derived consumable product that is not 14
115	118		in compliance with G.S. 18D-105. 15
116	119		(7) Knowingly, or having reason to know, sell at retail hemp flower or a product 16
117	120		containing hemp flower that is not accompanied by a certificate of analysis 17
118	121		issued within the previous six-month period demonstrating that the hemp 18
119	122		flower or product containing hemp flower has a concentration of no more than 19
120	123		three-tenths of one percent (0.3%) on a dry weight basis of delta-9 20
121	124		tetrahydrocannabinol. 21
122	125		(b) Civil Penalties. – Violation of this section shall have the following penalties: 22
123	126		(1) For the first violation, the ALE Division may impose a civil penalty of no 23
124	127		more than five hundred dollars ($500.00). 24
125	128		(2) For the second violation within three years, the ALE Division may impose a 25
126	129		civil penalty of no more than seven hundred fifty dollars ($750.00). 26
127	130		(3) For the third violation within three years of the first violation, the ALE 27
128	131		Division shall impose a civil penalty of no more than one thousand dollars 28
129	132		($1,000) and suspend the retail dealer's license for one year. 29
130	133		(4) For a fourth or subsequent violation within three years of the first violation, 30
131	134		the ALE Division shall impose a civil penalty of no more than two thousand 31
132	135		dollars ($2,000) and revoke the retail dealer's license. 32
133	136		(c) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 33
134	137		a retail dealer's license, the ALE Division may accept from the retail dealer an offer in 34
135	138		compromise to pay a penalty of not more than three thousand dollars ($3,000). The ALE Division 35
136	139		may either accept a compromise or revoke a license, but not both. The ALE Division may accept 36
137	140		a compromise and suspend the license in the same case. 37
138	141		(d) Testing Fee. – In any case in which the ALE Division imposes a penalty pursuant to 38
139	142		subsection (b) of this section, for a violation of subdivision (4) of subsection (a) of this section, 39
140	143		the retail dealer shall also pay to the ALE Division the actual costs paid by the ALE Division for 40
141	144		testing of the samples resulting in the violation. Any fee collected pursuant to this subsection 41
142	145		shall be remitted to the ALE Division. 42
143	146		(e) Defenses. – It is a defense to a violation of subdivision (1) of subsection (a) of this 43
144	147		section if the retail dealer does any of the following: 44
145	148		(1) Shows that the purchaser produced a drivers license, a special identification 45
146	149		card issued under G.S. 20-37.7 or issued by the state agency of any other state 46
147	150		authorized to issue similar official state special identification cards for that 47
148	151		state, a tribal enrollment card issued by a State or federally recognized Indian 48
149	152		Tribe, a military identification card, or a passport showing the purchaser's age 49
150	153		to be at least the required age for purchase and bearing a physical description 50
151	154		of the person named on the card reasonably describing the purchaser. 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 ~~House Bill 607-First Edition~~
	155	+	Page 4 DRH10282-CEf-4
153	156		(2) Produces evidence of other facts that reasonably indicated at the time of sale 1
154	157		that the purchaser was at least the required age. 2
155	158		(3) Shows that at the time of purchase, the purchaser utilized a biometric 3
156	159		identification system that demonstrated (i) the purchaser's age to be at least 4
157	160		the required age for the purchase and (ii) the purchaser had previously 5
158	161		registered with the retail dealer or retail dealer's agent a drivers license, a 6
159	162		special identification card issued under G.S. 20-37.7 or issued by the state 7
160	163		agency of any other state authorized to issue similar official state special 8
161	164		identification cards for that state, a military identification card, or a passport 9
162	165		showing the purchaser's date of birth and bearing a physical description of the 10
163	166		person named on the document. 11
164	167		(f) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 12
165	168		this section, including any penalty received as an offer in compromise, shall be remitted to the 13
166	169		Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 14
167	170		(g) Forfeiture. – Any product sold in violation of subdivision (4) of subsection (a) of this 15
168	171		section shall be subject to forfeiture pursuant to the procedures set forth in G.S. 18D-301. 16
169	172		(h) Criminal Penalty. – Any person against whom a civil penalty has been imposed for 17
170	173		violation of subdivision (3) of subsection (a) of this section who commits a second violation of 18
171	174		subdivision (3) of subsection (a) of this section is guilty of a Class A1 misdemeanor. Any person 19
172	175		who commits a third or subsequent violation of subdivision (3) of subsection (a) of this section 20
173	176		is guilty of a Class H felony. 21
174	177		"§ 18D-101A. Sales and transfer restrictions on a producer. 22
175	178		(a) Restriction. – A producer shall not knowingly sell or in any way transfer hemp that 23
176	179		has been processed or prepared with the intent to be used in a hemp-derived consumable product 24
177	180		to any person or entity other than a manufacturer licensed pursuant to this Chapter. 25
178	181		(b) Civil Penalties. – Violation of this section shall have the following penalties: 26
179	182		(1) For the first violation, the ALE Division may impose a civil penalty of no 27
180	183		more than five hundred dollars ($500.00). 28
181	184		(2) For the second violation within three years, the ALE Division may impose a 29
182	185		civil penalty of no more than seven hundred fifty dollars ($750.00). 30
183	186		(3) For the third violation within three years of the first violation, the ALE 31
184	187		Division shall impose a civil penalty of no more than one thousand dollars 32
185	188		($1,000). 33
186	189		(4) For a fourth or subsequent violation within three years of the first violation, 34
187	190		the ALE Division shall impose a civil penalty of no more than two thousand 35
188	191		dollars ($2,000). 36
189	192		(c) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 37
190	193		this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with 38
191	194		G.S. 115C-457.2. 39
192	195		(d) Criminal Penalty. – Any person against whom a civil penalty has been imposed for 40
193	196		violation of this section who commits a second violation of this section is guilty of a Class A1 41
194	197		misdemeanor. Any person who commits a third or subsequent violation of this section is guilty 42
195	198		of a Class H felony. 43
196	199		(e) Applicability of this Section. – Nothing in this section shall be construed as 44
197	200		prohibiting a producer from selling or transferring hemp that is intended to be used in any lawful 45
198	201		product other than those regulated by this Chapter. 46
199	202		"§ 18D-102. Offenses involving the purchase, attempted purchase, or possession of 47
200	203		hemp-derived consumable products by a person under 21 years of age. 48
201	204		(a) It is unlawful for any person to give a hemp-derived consumable product to anyone 49
202	205		less than 21 years old. 50 General Assembly Of North Carolina Session 2025
203		-	~~House Bill 607-First Edition~~ Page 5
	206	+	DRH10282-CEf-4 Page 5
204	207		(b) It is unlawful for a person less than 21 years old to possess, purchase, or attempt to 1
205	208		purchase a hemp-derived consumable product. 2
206	209		(c) It is unlawful for any person to enter or attempt to enter a place where hemp-derived 3
207	210		consumable products are sold or consumed, or to obtain or attempt to obtain hemp-derived 4
208	211		consumable products, or to obtain or attempt to obtain permission to purchase hemp-derived 5
209	212		consumable products, in violation of subsection (b) of this section, by using or attempting to use 6
210	213		any of the following: 7
211	214		(1) A fraudulent or altered drivers license. 8
212	215		(2) A fraudulent or altered identification document other than a drivers license. 9
213	216		(3) A drivers license issued to another person. 10
214	217		(4) An identification document other than a drivers license issued to another 11
215	218		person. 12
216	219		(5) Any other form or means of identification that indicates or symbolizes that the 13
217	220		person is not prohibited from purchasing or possessing a hemp-derived 14
218	221		consumable product under this section. 15
219	222		(d) It is unlawful for any person to permit the use of the person's drivers license or any 16
220	223		other form of identification of any kind issued or given to the person by any other person who 17
221	224		violates or attempts to violate subsection (b) of this section. 18
222	225		(e) Penalties. – 19
223	226		(1) Any person less than 21 years old who violates this section is guilty of a Class 20
224	227		2 misdemeanor. 21
225	228		(2) Any person at least 21 years old who violates this section is guilty of a Class 22
226	229		1 misdemeanor. 23
227	230		(3) Aiding or abetting a violation of this section shall be punished as provided in 24
228	231		subdivisions (1) and (2) of this subsection, and all other provisions of this 25
229	232		section shall apply to that offense. 26
230	233		(f) Nothing in this section prohibits an underage person from selling, transporting, or 27
231	234		possessing hemp-derived consumable products in the course of employment, if the employment 28
232	235		of the person for that purpose is lawful under applicable youth employment statutes. 29
233	236		"§ 18D-103. Offenses involving the manufacture and distribution of hemp-derived 30
234	237		consumable products. 31
235	238		(a) Offenses. – It is unlawful for a manufacturer or distributor to do any of the following: 32
236	239		(1) Knowingly, or having reason to know, distribute samples of a hemp-derived 33
237	240		consumable product in or on a public street, sidewalk, park, or public building. 34
238	241		(2) Engage in the business of manufacturing or distributing a hemp-derived 35
239	242		consumable product without a valid license issued in accordance with this 36
240	243		Chapter. 37
241	244		(3) Knowingly, or having reason to know, manufacture or distribute a 38
242	245		hemp-derived consumable product that has a concentration of more than 39
243	246		three-tenths of one percent (0.3%) on a dry weight basis of delta-9 40
244	247		tetrahydrocannabinol. 41
245	248		(b) Criminal Penalties. – A violation of this section is a Class A1 misdemeanor. 42
246	249		(c) Civil Penalties. – In addition to any criminal punishment authorized by this section, 43
247	250		for any violation of this section the ALE Division shall take one or more of the following actions 44
248	251		against the licensee: 45
249	252		(1) Suspend the licensee's license for a specified period of time not longer than 46
250	253		three years. 47
251	254		(2) Revoke the licensee's license. 48
252	255		(3) Impose conditions on the operating hours of the licensee's business. 49
253	256		(4) Impose civil penalties as follows: 50 General Assembly Of North Carolina Session 2025
254		-	Page 6 ~~House Bill 607-First Edition~~
	257	+	Page 6 DRH10282-CEf-4
255	258		a. For a first violation, impose a civil penalty of no more than one 1
256	259		thousand dollars ($1,000). 2
257	260		b. For a second violation within three years, impose a civil penalty of no 3
258	261		more than five thousand dollars ($5,000). 4
259	262		c. For a third violation within three years of the first violation, impose a 5
260	263		civil penalty of no more than seven thousand five hundred dollars 6
261	264		($7,500). 7
262	265		(d) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 8
263	266		a manufacturer's or distributor's license, the ALE Division may accept from the manufacturer or 9
264	267		distributor an offer in compromise to pay a penalty of not more than eight thousand dollars 10
265	268		($8,000). The ALE Division may either accept a compromise or revoke a license, but not both. 11
266	269		The ALE Division may accept a compromise and suspend the license in the same case. 12
267	270		(e) Testing Fee. – In any case in which the ALE Division imposes a penalty pursuant to 13
268	271		subsection (b) of this section, for a violation of subdivision (3) of subsection (a) of this section, 14
269	272		the manufacturer or distributor shall also pay to the ALE Division the actual costs paid by the 15
270	273		ALE Division for testing of the samples resulting in the violation. Any fee collected pursuant to 16
271	274		this subsection shall be remitted to the ALE Division. 17
272	275		(f) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 18
273	276		this section, including any penalty received as an offer in compromise, shall be remitted to the 19
274	277		Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 20
275	278		(g) Defense. – It is a defense to a violation of subdivision (3) of subsection (a) of this 21
276	279		section if the manufacturer does all of the following: 22
277	280		(1) Recalls all hemp-derived consumable products from the same batch as the 23
278	281		product on which the violation is based. 24
279	282		(2) Has samples of the batch tested by an independent testing laboratory. The 25
280	283		sample size required for testing pursuant to this subdivision shall be five times 26
281	284		the number of units required pursuant to G.S. 18D-104(e) based on the size of 27
282	285		the batch at production, regardless of the number of units that are able to be 28
283	286		recalled. 29
284	287		(3) Provides certified results from the independent testing laboratory indicating 30
285	288		that the sample tested does not contain a concentration of more than 31
286	289		three-tenths of one percent (0.3%) on a dry weight basis total combined of 32
287	290		delta-9 tetrahydrocannabinol. 33
288	291		(h) Forfeiture. – Any product sold in violation of subdivision (3) of subsection (a) of this 34
289	292		section shall be subject to forfeiture pursuant to the procedures set forth in G.S. 18D-301. 35
290	293		"§ 18D-104. Testing prior to distribution. 36
291	294		(a) Requirement. – The manufacturer shall have a hemp-derived consumable product 37
292	295		tested prior to distribution to a distributor or before distributing the product to a retail dealer. If 38
293	296		the hemp-derived consumable product is packaged in a manner that may be sold to the ultimate 39
294	297		consumer of the product when delivered to the distributor and the distributor does not open such 40
295	298		package, the distributor is not required to test the hemp-derived consumable product. If the 41
296	299		hemp-derived consumable product is not packaged in a manner that may be sold to the ultimate 42
297	300		consumer of the product when delivered to the distributor or the distributor does open such 43
298	301		package, the distributor shall have the hemp-derived consumable product tested prior to 44
299	302		distribution. The testing shall determine the presence and amounts of any of the substances listed 45
300	303		in subsection (b) of this section. No product that contains more than the maximum amount 46
301	304		indicated for any substance in subsection (b) of this section shall be distributed or sold in this 47
302	305		State. 48
303	306		(b) Substances Tested; Limitations. – Hemp-derived consumable products shall be tested 49
304	307		for the presence of and amount of the following substances and shall not exceed the amounts 50
305	308		indicated: 51 General Assembly Of North Carolina Session 2025
306		-	~~House Bill 607-First Edition~~ Page 7
	309	+	DRH10282-CEf-4 Page 7
307	310		(1) Cannabinoids, not to exceed a concentration of three-tenths of one percent 1
308	311		(0.3%) of delta-9 tetrahydrocannabinol. 2
309	312		(2) 2,3-butanedione (Diacetyl). 3
310	313		(3) Abamectin, not to exceed 300 parts per billion for ingestion or 100 parts per 4
311	314		billion for inhalation. 5
312	315		(4) Acephate, not to exceed 3,000 parts per billion for ingestion or 100 parts per 6
313	316		billion for inhalation. 7
314	317		(5) Acequinocyl, not to exceed 2,000 parts per billion for ingestion or 100 parts 8
315	318		per billion for inhalation. 9
316	319		(6) Acetamiprid, not to exceed 3,000 parts per billion for ingestion or 100 parts 10
317	320		per billion for inhalation. 11
318	321		(7) Aldicarb, not to exceed 100 parts per billion for ingestion or inhalation. 12
319	322		(8) Azoxystrobin, not to exceed 3,000 parts per billion for ingestion or 100 parts 13
320	323		per billion for inhalation. 14
321	324		(9) Bifenazate, not to exceed 3,000 parts per billion for ingestion or 100 parts per 15
322	325		billion for inhalation. 16
323	326		(10) Bifenthrin, not to exceed 500 parts per billion for ingestion or 100 parts per 17
324	327		billion for inhalation. 18
325	328		(11) Boscalid, not to exceed 3,000 parts per billion for ingestion or 100 parts per 19
326	329		billion for inhalation. 20
327	330		(12) Captan, not to exceed 3,000 parts per billion for ingestion or 700 parts per 21
328	331		billion for inhalation. 22
329	332		(13) Carbaryl, not to exceed 500 parts per billion for ingestion or 500 parts per 23
330	333		billion for inhalation. 24
331	334		(14) Carbofuran, not to exceed 100 parts per billion for ingestion or inhalation. 25
332	335		(15) Chlorantraniliprole, not to exceed 3,000 parts per billion for ingestion or 1,000 26
333	336		parts per billion for inhalation. 27
334	337		(16) Chlordane, not to exceed 100 parts per billion for ingestion or inhalation. 28
335	338		(17) Chlorfenapyr, not to exceed 100 parts per billion for ingestion or inhalation. 29
336	339		(18) Chlormequat chloride, not to exceed 3,000 parts per billion for ingestion or 30
337	340		1,000 parts per billion for inhalation. 31
338	341		(19) Chlorpyrifos, not to exceed 100 parts per billion for ingestion or inhalation. 32
339	342		(20) Clofentezine, not to exceed 500 parts per billion for ingestion or 200 parts per 33
340	343		billion for inhalation. 34
341	344		(21) Coumaphos, not to exceed 100 parts per billion for ingestion or inhalation. 35
342	345		(22) Cyfluthrin, not to exceed 1,000 parts per billion for ingestion or 500 parts per 36
343	346		billion for inhalation. 37
344	347		(23) Cypermethrin, not to exceed 1,000 parts per billion for ingestion or 500 parts 38
345	348		per billion for inhalation. 39
346	349		(24) Daminozide, not to exceed 100 parts per billion for ingestion or inhalation. 40
347	350		(25) DDVP (Dichlorvos), not to exceed 100 parts per billion for ingestion or 41
348	351		inhalation. 42
349	352		(26) Diazinon, not to exceed 200 parts per billion for ingestion or 100 parts per 43
350	353		billion for inhalation. 44
351	354		(27) Dimethoate, not to exceed 100 parts per billion for ingestion or inhalation. 45
352	355		(28) Dimethomorph, not to exceed 3,000 parts per billion for ingestion or 200 parts 46
353	356		per billion for inhalation. 47
354	357		(29) Ethoprop(hos), not to exceed 100 parts per billion for ingestion or inhalation. 48
355	358		(30) Etofenprox, not to exceed 100 parts per billion for ingestion or inhalation. 49
356	359		(31) Etoxazole, not to exceed 1,500 parts per billion for ingestion or 100 parts per 50
357	360		billion for inhalation. 51 General Assembly Of North Carolina Session 2025
358		-	Page 8 ~~House Bill 607-First Edition~~
	361	+	Page 8 DRH10282-CEf-4
359	362		(32) Fenhexamid, not to exceed 3,000 parts per billion for ingestion or 100 parts 1
360	363		per billion for inhalation. 2
361	364		(33) Fenoxycarb, not to exceed 100 parts per billion for ingestion or inhalation. 3
362	365		(34) Fenpyroximate, not to exceed 2,000 parts per billion for ingestion or 100 parts 4
363	366		per billion for inhalation. 5
364	367		(35) Fipronil, not to exceed 100 parts per billion for ingestion or inhalation. 6
365	368		(36) Flonicamid, not to exceed 2,000 parts per billion for ingestion or 100 parts per 7
366	369		billion for inhalation. 8
367	370		(37) Fludioxonil, not to exceed 3,000 parts per billion for ingestion or 100 parts 9
368	371		per billion for inhalation. 10
369	372		(38) Hexythiazox, not to exceed 2,000 parts per billion for ingestion or 100 parts 11
370	373		per billion for inhalation. 12
371	374		(39) Imazalil, not to exceed 100 parts per billion for ingestion or inhalation. 13
372	375		(40) Imidacloprid, not to exceed 3,000 parts per billion for ingestion or 400 parts 14
373	376		per billion for inhalation. 15
374	377		(41) Kresoxim-methyl, not to exceed 1,000 parts per billion for ingestion or 100 16
375	378		parts per billion for inhalation. 17
376	379		(42) Malathion, not to exceed 2,000 parts per billion for ingestion or 200 parts per 18
377	380		billion for inhalation. 19
378	381		(43) Metalaxyl, not to exceed 3,000 parts per billion for ingestion or 100 parts per 20
379	382		billion for inhalation. 21
380	383		(44) Methiocarb, not to exceed 100 parts per billion for ingestion or inhalation. 22
381	384		(45) Methomyl, not to exceed 100 parts per billion for ingestion or inhalation. 23
382	385		(46) Methyl parathion, not to exceed 100 parts per billion for ingestion or 24
383	386		inhalation. 25
384	387		(47) Mevinphos, not to exceed 100 parts per billion for ingestion or inhalation. 26
385	388		(48) Myclobutanil, not to exceed 3,000 parts per billion for ingestion; prohibited at 27
386	389		any concentration for inhalation. 28
387	390		(49) Naled, not to exceed 500 parts per billion for ingestion or 250 parts per billion 29
388	391		for inhalation. 30
389	392		(50) Oxamyl, not to exceed 500 parts per billion for ingestion or inhalation. 31
390	393		(51) Paclobutrazol, not to exceed 100 parts per billion for ingestion or inhalation. 32
391	394		(52) Pentachloronitrobenzene, not to exceed 200 parts per billion for ingestion or 33
392	395		150 parts per billion for inhalation. 34
393	396		(53) Permethrin, not to exceed 1,000 parts per billion for ingestion or 100 parts per 35
394	397		billion for inhalation. 36
395	398		(54) Phosmet, not to exceed 200 parts per billion for ingestion or 100 parts per 37
396	399		billion for inhalation. 38
397	400		(55) Piperonyl butoxide, not to exceed 3,000 parts per billion for ingestion or 39
398	401		inhalation. 40
399	402		(56) Prallethrin, not to exceed 400 parts per billion for ingestion or 100 parts per 41
400	403		billion for inhalation. 42
401	404		(57) Propiconazole, not to exceed 1,000 parts per billion for ingestion or 100 parts 43
402	405		per billion for inhalation. 44
403	406		(58) Propoxur, not to exceed 100 parts per billion for ingestion or inhalation. 45
404	407		(59) Pyrethrins, not to exceed 1,000 parts per billion for ingestion or 500 parts per 46
405	408		billion for inhalation. 47
406	409		(60) Pyridaben, not to exceed 3,000 parts per billion for ingestion or 200 parts per 48
407	410		billion for inhalation. 49
408	411		(61) Spinetoram, not to exceed 3,000 parts per billion for ingestion or 200 parts per 50
409	412		billion for inhalation. 51 General Assembly Of North Carolina Session 2025
410		-	~~House Bill 607-First Edition~~ Page 9
	413	+	DRH10282-CEf-4 Page 9
411	414		(62) Spinosad A & D, not to exceed 3,000 parts per billion for ingestion or 100 1
412	415		parts per billion for inhalation. 2
413	416		(63) Spiromesifen, not to exceed 3,000 parts per billion for ingestion or 100 parts 3
414	417		per billion for inhalation. 4
415	418		(64) Spirotetramat, not to exceed 3,000 parts per billion for ingestion or 100 parts 5
416	419		per billion for inhalation. 6
417	420		(65) Spiroxamine, not to exceed 100 parts per billion for ingestion or inhalation. 7
418	421		(66) Tebuconazole, not to exceed 1,000 parts per billion for ingestion or 100 parts 8
419	422		per billion for inhalation. 9
420	423		(67) Thiacloprid, not to exceed 100 parts per billion for ingestion or 100 parts per 10
421	424		billion for inhalation. 11
422	425		(68) Thiamethoxam, not to exceed 1,000 parts per billion for ingestion or 500 parts 12
423	426		per billion for inhalation. 13
424	427		(69) Trifloxystrobin, not to exceed 3,000 parts per billion for ingestion or 100 parts 14
425	428		per billion for inhalation. 15
426	429		(70) 1,2-Dichloroethane, not to exceed 2 parts per million. 16
427	430		(71) 1,1-Dichloroethene, not to exceed 8 parts per million. 17
428	431		(72) Acetone, not to exceed 750 parts per million. 18
429	432		(73) Acetonitrile, not to exceed 60 parts per million. 19
430	433		(74) Benzene, not to exceed 1 part per million. 20
431	434		(75) Butane, not to exceed 5,000 parts per million. 21
432	435		(76) Chloroform, not to exceed 2 parts per million. 22
433	436		(77) Ethanol, not to exceed 5,000 parts per million. 23
434	437		(78) Ethyl Acetate, not to exceed 400 parts per million. 24
435	438		(79) Ethyl Ether, not to exceed 500 parts per million. 25
436	439		(80) Ethylene Oxide, not to exceed 5 parts per million. 26
437	440		(81) Heptane, not to exceed 5,000 parts per million. 27
438	441		(82) Hexane, not to exceed 250 parts per million. 28
439	442		(83) Isopropyl Alcohol, not to exceed 500 parts per million. 29
440	443		(84) Methanol, not to exceed 250 parts per million. 30
441	444		(85) Methylene Chloride, not to exceed 125 parts per million. 31
442	445		(86) Pentane, not to exceed 750 parts per million. 32
443	446		(87) Propane, not to exceed 5,000 parts per million. 33
444	447		(88) Toluene, not to exceed 150 parts per million. 34
445	448		(89) Trichloroethylene, not to exceed 25 parts per million. 35
446	449		(90) Xylenes, Total (ortho-, meta-, para-), not to exceed 150 parts per million. 36
447	450		(91) Cadmium, not to exceed 500 parts per billion for ingestion or 200 parts per 37
448	451		billion for inhalation. 38
449	452		(92) Lead, not to exceed 500 parts per billion for ingestion or inhalation. 39
450	453		(93) Arsenic, not to exceed 1,500 parts per billion for ingestion or 200 parts per 40
451	454		billion for inhalation. 41
452	455		(94) Mercury, not to exceed 3,000 parts per billion for ingestion or 200 parts per 42
453	456		billion for inhalation. 43
454	457		(95) Shiga toxin-producing Escherichia coli (STEC E. coli) and other pathogenic 44
455	458		E. coli, not to exceed 1 CFU per gram. 45
456	459		(96) Salmonella, not to exceed 1 CFU per gram. 46
457	460		(97) Aspergillus niger, Aspergillus fumigatus, Aspergillus flavus, Aspergillus 47
458	461		terreus, not to exceed 1 CFU per gram. 48
459	462		(98) Total Aflatoxin (B1, B2, G1, G2), not to exceed 20 parts per billion for 49
460	463		ingestion or inhalation. 50
461	464		(99) Ochratoxin, not to exceed 20 parts per billion for ingestion or inhalation. 51 General Assembly Of North Carolina Session 2025
462		-	Page 10 ~~House Bill 607-First Edition~~
	465	+	Page 10 DRH10282-CEf-4
463	466		(100) Total combined Yeast and Mold, not to exceed 100,000 CFU per gram for 1
464	467		ingestion and inhalation. 2
465	468		(c) Laboratory Qualifications. – A manufacturer or distributor shall contract with an 3
466	469		independent testing laboratory to provide the testing required under subsection (a) of this section. 4
467	470		(d) Testing Method. – A laboratory providing testing required under subsection (a) of this 5
468	471		section shall use high-performance liquid chromatography for any separation and measurement 6
469	472		required in the testing. 7
470	473		(e) Batch Testing. – A sample of each batch manufactured shall undergo the testing 8
471	474		required by subsection (a) of this section and shall obtain a certificate of analysis by an 9
472	475		independent testing laboratory. The size of sample required to be tested shall be determined by 10
473	476		the size of the batch as follows: 11
474	477		(1) For a batch containing 1 to 999 units, the required sample size is 1 unit. 12
475	478		(2) For a batch containing 1,000 to 4,999 units, the required sample size is 2 units. 13
476	479		(3) For a batch containing 5,000 to 9,999 units, the required sample size is 3 units. 14
477	480		(4) For a batch containing 10,000 or more units, the required sample size is 5 15
478	481		units. 16
479	482		(f) Expiration Date. – A hemp-derived consumable product shall have an expiration date 17
480	483		on the label that conforms with applicable federal law. 18
481	484		(g) Civil Penalties. – A violation of this section shall result in the ALE Division taking 19
482	485		one or more of the following actions against the licensee: 20
483	486		(1) Suspend the licensee's license for a specified period of time not longer than 21
484	487		three years. 22
485	488		(2) Revoke the licensee's license. 23
486	489		(3) Impose conditions on the operating hours of the licensee's business. 24
487	490		(4) Impose civil penalties as follows: 25
488	491		a. For a first violation, impose a civil penalty of no more than one 26
489	492		thousand dollars ($1,000). 27
490	493		b. For a second violation within three years, impose a civil penalty of no 28
491	494		more than five thousand dollars ($5,000). 29
492	495		c. For a third violation within three years of the first violation, impose a 30
493	496		civil penalty of no more than seven thousand five hundred dollars 31
494	497		($7,500). 32
495	498		(h) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 33
496	499		a manufacturer's or distributor's license, the ALE Division may accept from the manufacturer or 34
497	500		distributor an offer in compromise to pay a penalty of not more than eight thousand dollars 35
498	501		($8,000). The ALE Division may either accept a compromise or revoke a license, but not both. 36
499	502		The ALE Division may accept a compromise and suspend the license in the same case. 37
500	503		(i) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 38
501	504		this section, including any penalty received as an offer in compromise, shall be remitted to the 39
502	505		Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 40
503	506		(j) ALE Division Duties. – The ALE Division shall do all of the following: 41
504	507		(1) Maintain and post on its website a list of independent testing laboratories that 42
505	508		meet the qualifications to test intermediate manufactured material and finished 43
506	509		hemp-derived consumable products. 44
507	510		(2) Develop an application and process to determine qualifying independent 45
508	511		testing laboratories to be listed on the ALE Division's website. The application 46
509	512		shall require a potentially qualifying laboratory to submit a sample certificate 47
510	513		of analysis issued by the applying laboratory indicating that the laboratory is 48
511	514		capable of detecting the chemicals provided in subsection (b) of this section. 49
512	515		"§ 18D-105. Additional requirements and restrictions for hemp-derived consumable 50
513	516		products. 51 General Assembly Of North Carolina Session 2025
514		-	~~House Bill 607-First Edition~~ Page 11
	517	+	DRH10282-CEf-4 Page 11
515	518		(a) Packaging Requirements. – A hemp-derived consumable product that is sold in this 1
516	519		State shall meet both of the following requirements: 2
517	520		(1) The product shall satisfy the child-resistant effectiveness standards under 16 3
518	521		C.F.R. § 1700.15(b)(1) when tested in accordance with the requirements of 16 4
519	522		C.F.R. § 1700.20. 5
520	523		(2) The product shall be labeled with consumer protection warnings in the form 6
521	524		of statements that cover all of the following: 7
522	525		a. A list of ingredients and possible allergens and a nutritional fact panel 8
523	526		or have a quick response code that can be scanned that directs 9
524	527		consumers to a website containing the list of ingredients and possible 10
525	528		allergens and a nutritional fact panel. 11
526	529		b. A statement that use while pregnant or breastfeeding may be harmful. 12
527	530		c. A statement that consumption of certain cannabinoids may impair 13
528	531		your ability to drive and operate heavy machinery. 14
529	532		d. A statement that the product is not approved by the United States Food 15
530	533		and Drug Administration. 16
531	534		e. A statement to keep out of reach of children. 17
532	535		f. A statement to consult your physician before use. 18
533	536		g. If the product is ingestible, the amount of hemp-derived cannabinoid 19
534	537		in each serving of the product, measured in milligrams. 20
535	538		h. The total amount of hemp-derived cannabinoid in the entire package, 21
536	539		measured in milligrams. 22
537	540		i. The net weight of the product. 23
538	541		j. A quick response code that can be scanned to access a website 24
539	542		providing the product's batch number, date received, date of 25
540	543		completion, and method of analysis for the testing required under 26
541	544		G.S. 18D-106. 27
542	545		k. An expiration date in accordance with applicable federal law. 28
543	546		(b) Advertising Restrictions. – A manufacturer, distributor, or retail dealer of a 29
544	547		hemp-derived consumable product shall not advertise, market, or offer for sale the product by 30
545	548		using, in the labeling or design of the product or product packaging or in advertising or marketing 31
546	549		materials for the product trade dress, trademarks, branding, or other related materials, any 32
547	550		imagery or scenery that depicts or signifies characters or symbols known to appeal primarily to 33
548	551		persons under 21 years of age, including, but not limited to, superheroes, comic book characters, 34
549	552		video game characters, television show characters, movie characters, mythical creatures, 35
550	553		unicorns, animals, cartoon characters, or any imitation of the packaging or labeling of candy, 36
551	554		cereals, sweets, chips, or other food products typically marketed to persons under 21 years of 37
552	555		age. 38
553	556		(c) Non-Liquid Ingestible Product Restrictions. – Any hemp-derived consumable 39
554	557		product intended for ingestion that is not a liquid and not intended for inhalation shall not do any 40
555	558		of the following: 41
556	559		(1) Be sold in a serving that contains more than 25 milligrams, in the aggregate, 42
557	560		of one or more of the following hemp-derived cannabinoids: 43
558	561		a. Delta-9 tetrahydrocannabinol. 44
559	562		b. Delta-7 tetrahydrocannabinol. 45
560	563		c. Delta-8 tetrahydrocannabinol. 46
561	564		d. Delta-10 tetrahydrocannabinol. 47
562	565		(2) Be formed in a shape that would violate subsection (b) of this section. 48
563	566		(c1) Liquid Ingestible Product Restrictions. – Any hemp-derived consumable product 49
564	567		intended for ingestion that is a liquid and not intended for inhalation shall not be sold in a serving 50 General Assembly Of North Carolina Session 2025
565		-	Page 12 ~~House Bill 607-First Edition~~
	568	+	Page 12 DRH10282-CEf-4
566	569		that contains more than 10 milligrams, or a package that contains more than 100 milligrams, in 1
567	570		the aggregate, of one or more of the following hemp-derived cannabinoids: 2
568	571		(1) Delta-9 tetrahydrocannabinol. 3
569	572		(2) Delta-7 tetrahydrocannabinol. 4
570	573		(3) Delta-8 tetrahydrocannabinol. 5
571	574		(4) Delta-10 tetrahydrocannabinol. 6
572	575		(c2) Inhalable Product for Vaporization Restrictions. – Any hemp-derived consumable 7
573	576		product intended for inhalation by vaporization shall not be sold in a container that contains more 8
574	577		than 3 milliliters of hemp-derived cannabinoids, in the aggregate, of one or more of the following 9
575	578		hemp-derived cannabinoids: 10
576	579		(1) Delta-9 tetrahydrocannabinol. 11
577	580		(2) Delta-7 tetrahydrocannabinol. 12
578	581		(3) Delta-8 tetrahydrocannabinol. 13
579	582		(4) Delta-10 tetrahydrocannabinol. 14
580	583		For the purposes of this subsection "vaporization" includes the heating of hemp-derived oil 15
581	584		to release aerosolized hemp-derived cannabinoids. 16
582	585		(d) Civil Penalties. – A violation of this section shall result in the ALE Division taking 17
583	586		one or more of the following actions against the licensee: 18
584	587		(1) Suspend the licensee's license for a specified period of time not longer than 19
585	588		three years. 20
586	589		(2) Revoke the licensee's license. 21
587	590		(3) Impose conditions on the operating hours of the licensee's business. 22
588	591		(4) Impose civil penalties as follows: 23
589	592		a. For a first violation, impose a civil penalty of no more than one 24
590	593		thousand dollars ($1,000). 25
591	594		b. For a second violation within three years, impose a civil penalty of no 26
592	595		more than five thousand dollars ($5,000). 27
593	596		c. For a third violation within three years of the first violation, impose a 28
594	597		civil penalty of no more than seven thousand five hundred dollars 29
595	598		($7,500). 30
596	599		(e) Compromise. – In any case in which the ALE Division is entitled to suspend or revoke 31
597	600		a manufacturer's or distributor's license, the ALE Division may accept from the manufacturer or 32
598	601		distributor an offer in compromise to pay a penalty of not more than eight thousand dollars 33
599	602		($8,000). The ALE Division may either accept a compromise or revoke a license, but not both. 34
600	603		The ALE Division may accept a compromise and suspend the license in the same case. 35
601	604		(f) Proceeds of Civil Penalty. – The clear proceeds of any civil penalty imposed under 36
602	605		this section, including any penalty received as an offer in compromise, shall be remitted to the 37
603	606		Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 38
604	607		"§ 18D-105.1. Conduct on licensed premises. 39
605	608		(a) Certain Conduct. – It shall be unlawful for a licensee or the licensee's agent or 40
606	609		employee to knowingly allow any of the following kinds of conduct to occur on the licensed 41
607	610		premises: 42
608	611		(1) Any violation of this Chapter. 43
609	612		(2) Any violation of the controlled substances, gambling, or any other unlawful 44
610	613		acts. 45
611	614		(b) Supervision. – It shall be unlawful for a permittee to fail to superintend in person or 46
612	615		through a manager the business for which a license is issued. 47
613	616		"§ 18D-105.2. Safe harbor protection for goods not sold in State. 48
614	617		(a) This Chapter shall not apply to the following: 49
615	618		(1) A safe harbor hemp product. 50
616	619		(2) A safe harbor manufacturer or storage facility. 51 General Assembly Of North Carolina Session 2025
617		-	~~House Bill 607-First Edition~~ Page 13
	620	+	DRH10282-CEf-4 Page 13
618	621		(b) For the purposes of this section, a "Safe Harbor Hemp Product" means a 1
619	622		hemp-derived compound or cannabinoid, whether a finished product or in the process of being 2
620	623		produced, that is permitted to be manufactured for distribution, produced for distribution, 3
621	624		packaged for distribution, processed for distribution, prepared for distribution, treated for 4
622	625		distribution, transported for distribution, or held for distribution in North Carolina for export 5
623	626		from North Carolina but that is not permitted to be sold or distributed in North Carolina. 6
624	627		(c) For the purposes of this section, a "Safe Harbor Manufacturer or Storage Facility" 7
625	628		means a facility that manufactures for distribution, produces for distribution, packages for 8
626	629		distribution, processes for distribution, prepares for distribution, treats for distribution, transports 9
627	630		for distribution, or holds for distribution a Safe Harbor Hemp Product. 10
628	631		"§ 18D-106. Construction of Chapter. 11
629	632		Nothing in this Chapter shall be construed to do any of the following: 12
630	633		(1) Permit a person to undertake any task under the influence of a hemp-derived 13
631	634		consumable product when doing so would constitute negligence or 14
632	635		professional malpractice. 15
633	636		(2) Permit a person to operate, navigate, or be in actual physical control of a motor 16
634	637		vehicle, aircraft, motorized watercraft, or any other vehicle while under the 17
635	638		influence of a hemp-derived consumable product. 18
636	639		(3) Require an employer to accommodate the use of a hemp-derived consumable 19
637	640		product in a workplace or an employee working while under the influence of 20
638	641		a hemp-derived consumable product. 21
639	642		(4) Require an individual or establishment in lawful possession of property to 22
640	643		admit a guest, client, customer, or other visitor who is impaired as a result of 23
641	644		the person's use of a hemp-derived consumable product. 24
642	645		(5) Exempt a person from prosecution for a criminal offense related to impairment 25
643	646		or intoxication resulting from the use of a hemp-derived consumable product 26
644	647		or relieve a person from any requirement under law to submit to a breath, 27
645	648		blood, urine, or other test to detect the presence of a controlled substance. 28
646	649		(6) Limit the ability of an employer to establish, continue, or enforce a drug-free 29
647	650		workplace program or policy. 30
648	651		(7) Create a cause of action against an employer for wrongful discharge or 31
649	652		discrimination. 32
650	653		(8) Allow the possession, sale, manufacture, or distribution of any substance that 33
651	654		is otherwise prohibited by Article 5 of Chapter 90 of the General Statutes. 34
652	655		"Article 2. 35
653	656		"Licensing. 36
654	657		"§ 18D-200. Definitions. 37
655	658		The definitions contained in Article 1 of this Chapter apply to this Article as appropriate. 38
656	659		"§ 18D-201. Licensing requirements; qualifications; duration. 39
657	660		(a) Requirement. – Prior to the commencement of business or by July 1, 2026, whichever 40
658	661		is later, a person or entity engaged in this State in any business regulated by this Chapter and 41
659	662		listed in this subsection shall obtain a license to engage in that business from the ALE Division. 42
660	663		Businesses engaging in one or more of the following are required to obtain a license pursuant to 43
661	664		this section: 44
662	665		(1) Manufacturing hemp-derived consumable products. 45
663	666		(2) Distributing hemp-derived consumable products. 46
664	667		(3) Selling hemp-derived consumable products. 47
665	668		(b) Qualifications. – In order to obtain and maintain a license under subsection (a) of this 48
666	669		section, a person shall meet all of the following criteria: 49
667	670		(1) Be at least 21 years old. 50 General Assembly Of North Carolina Session 2025
668		-	Page 14 ~~House Bill 607-First Edition~~
	671	+	Page 14 DRH10282-CEf-4
669	672		(2) Submit to the ALE Division any information determined by the ALE Division 1
670	673		to be necessary for the efficient enforcement of this Chapter. 2
671	674		(3) Have not been convicted of a felony relating to a controlled substance within 3
672	675		10 years in any state or federal jurisdiction. 4
673	676		(4) Consent to reasonable inspection by the ALE Division of the inventory of 5
674	677		products regulated by this Chapter to ensure compliance with this Chapter and 6
675	678		the taking of samples found to not be in compliance with the packaging, 7
676	679		labeling, and testing requirements of this section. 8
677	680		(5) Be current in filing all applicable tax returns to the State and in payment of all 9
678	681		taxes, interest, and penalties collectable pursuant to G.S. 105-241.22. 10
679	682		(c) Single License Required. – A person or entity engaged in more than one of the 11
680	683		businesses listed in subsection (a) of this section shall only be required to obtain a single license. 12
681	684		Upon application for a license, the person or entity engaged in more than one type of business 13
682	685		regulated by this Chapter must indicate on the license application all of the businesses listed in 14
683	686		subsection (a) of this section in which the business engages or intends to engage. A person or 15
684	687		entity applying for a license for more than one type of business listed in subsection (a) of this 16
685	688		section shall pay a single fee as provided in G.S. 18D-202(c). 17
686	689		(d) Duration. – A license issued pursuant to this Article is valid for a period of one year 18
687	690		and shall be renewed annually. 19
688	691		"§ 18D-202. Fees. 20
689	692		(a) Application Fee. – The application fee for a license required pursuant to this Article 21
690	693		shall be as follows: 22
691	694		(1) For a license to manufacture hemp-derived consumable products, a fee of 23
692	695		fifteen thousand dollars ($15,000). However, if an applicant submits proof that 24
693	696		the applicant's gross income for the calendar year prior to application was less 25
694	697		than one hundred thousand dollars ($100,000), the fee shall be one thousand 26
695	698		dollars ($1,000). 27
696	699		(2) For a license to distribute hemp-derived consumable products, a fee of two 28
697	700		thousand five hundred dollars ($2,500). However, if an applicant submits 29
698	701		proof that the applicant's gross income for the calendar year prior to 30
699	702		application was less than one hundred thousand dollars ($100,000), the fee 31
700	703		shall be seven hundred fifty dollars ($750.00). 32
701	704		(3) For a license to sell hemp-derived consumable products at a retail location, or 33
702	705		online for delivery to a person within this State, a fee of two hundred fifty 34
703	706		dollars ($250.00) for each location or each internet website offering delivery 35
704	707		in this State. However, a single entity with more than 25 locations, internet 36
705	708		websites offering delivery in this State, or a combination of the two shall not 37
706	709		pay more than five thousand dollars ($5,000) and shall submit a list of all 38
707	710		locations and all internet websites offering delivery in this State to the ALE 39
708	711		Division. 40
709	712		(b) Renewal Fee. – The renewal fee for a license issued pursuant to this Article shall be 41
710	713		as follows: 42
711	714		(1) For a license to manufacture hemp-derived consumable products, a renewal 43
712	715		fee of five thousand dollars ($5,000). 44
713	716		(2) For a license to distribute hemp-derived consumable products, a renewal fee 45
714	717		of seven hundred fifty dollars ($750.00). 46
715	718		(3) For a license to sell hemp-derived consumable products at a retail location or 47
716	719		online for delivery to a person within this State, a renewal fee in the same 48
717	720		amount as the initial licensing fees established under subsection (a) of this 49
718	721		section. 50 General Assembly Of North Carolina Session 2025
719		-	~~House Bill 607-First Edition~~ Page 15
	722	+	DRH10282-CEf-4 Page 15
720	723		(c) For an application for or renewal of a license to engage in more than one business 1
721	724		listed in subsection (a) of G.S. 18D-201, the fee shall be the highest fee of those prescribed for 2
722	725		the types of business indicated on the application or renewal, as applied to that applicant or 3
723	726		licensee. 4
724	727		"§ 18D-203. ALE Division authority to deny or revoke. 5
725	728		The ALE Division may revoke or refuse to issue any license for any of the following: 6
726	729		(1) Failure to comply with or meet any of the qualifications required by 7
727	730		G.S. 18D-201(b). 8
728	731		(2) Submission of false or misleading information in an application for licensure 9
729	732		or renewal. 10
730	733		(3) Submission of false or misleading information in any report or information 11
731	734		required by this Chapter to be submitted to the ALE Division. 12
732	735		(4) Failure to comply with civil penalties authorized by this Chapter. 13
733	736		"§ 18D-204. Civil penalties; procedure. 14
734	737		Proceedings for the assessment of civil penalties authorized in Article 1 of this Chapter shall 15
735	738		be governed by Chapter 150B of the General Statutes. If the person or entity assessed a civil 16
736	739		penalty fails to pay the penalty to the ALE Division, the ALE Division may institute an action in 17
737	740		the superior court of the county in which the person resides or has their principal place of business 18
738	741		to recover the unpaid amount of the penalty. An action to recover a civil penalty under this 19
739	742		Chapter shall not relieve any party from any other penalty prescribed by law. 20
740	743		"§ 18D-205. ALE Division to develop application, adopt rules, remit revenue. 21
741	744		(a) License Application. – The ALE Division shall develop and make available online an 22
742	745		application for the license required by this Article. 23
743	746		(b) Rules. – The ALE Division shall have authority to adopt, amend, and repeal rules to 24
744	747		carry out the provisions of this Chapter. 25
745	748		(c) Distribution of Revenue. – The revenue collected from fees established under this 26
746	749		Chapter shall be remitted to the ALE Division, on a monthly basis, to be used to cover costs 27
747	750		incurred by the ALE Division in enforcing the provisions of this Chapter. To the extent the funds 28
748	751		described in this subsection are deemed unappropriated, the funds are hereby appropriated for 29
749	752		the purpose set forth in this subsection. 30
750	753		"Article 3. 31
751	754		"Enforcement. 32
752	755		"§ 18D-300. ALE Division. 33
753	756		(a) Authority. – The ALE Division shall enforce the provisions of this Chapter in a 34
754	757		manner that is reasonable to reduce the extent to which hemp-derived consumable products are 35
755	758		sold or distributed to persons under 21 years of age and shall conduct random, unannounced 36
756	759		inspections at locations where hemp-derived consumable products are sold or distributed to 37
757	760		ensure compliance with the provisions of this Chapter. If, upon reasonable inspection, the ALE 38
758	761		Division determines a licensee's inventory may consist of products not in compliance with the 39
759	762		packaging, labeling, and testing requirements of this Chapter, the ALE Division is authorized to 40
760	763		only take samples of a licensee's inventory of hemp-derived consumable products considered 41
761	764		noncompliant to be submitted for testing in order to determine compliance with the provisions of 42
762	765		this Chapter. To procure evidence of violations of this Chapter, ALE Division agents shall have 43
763	766		authority to investigate the operation of each licensee under this Chapter and each licensed 44
764	767		premises for which a license has been issued under this Chapter, to make inspections that include 45
765	768		viewing the entire premises, including the examination of records, equipment, and proceeds 46
766	769		related to the manufacture or distribution of hemp-derived consumable products. The inspection 47
767	770		authorized by this section may be made at any time it reasonably appears that someone is on the 48
768	771		premises. 49
769	772		(b) Interference with Inspection. – Refusal by a licensee or by any employee of a licensee 50
770	773		to permit ALE Division agents to enter the premises to make an inspection authorized by 51 General Assembly Of North Carolina Session 2025
771		-	Page 16 ~~House Bill 607-First Edition~~
	774	+	Page 16 DRH10282-CEf-4
772	775		subsection (a) of this section shall be cause for suspension, revocation, or other action against the 1
773	776		licensee. It shall be a Class 2 misdemeanor for any person to resist or obstruct an agent attempting 2
774	777		to make a lawful inspection under this section. 3
775	778		(c) Report. – Beginning January 1, 2027, the ALE Division shall submit an annual report 4
776	779		to the General Assembly describing in detail the ALE Division's enforcement efforts under this 5
777	780		Chapter. The ALE Division shall also make the report required under this subsection available 6
778	781		on the ALE Division's website. 7
779	782		"§ 18D-301. Forfeiture of property. 8
780	783		(a) Seizure of Product. – For any hemp-derived consumable product subject to forfeiture, 9
781	784		a law enforcement officer is hereby authorized and empowered to seize and take possession of 10
782	785		such products. 11
783	786		(b) Custody until Trial. – A law enforcement officer seizing a product subject to forfeiture 12
784	787		shall provide for its safe storage until trial. 13
785	788		(c) Disposition after Criminal Trial. – The presiding judge in a criminal proceeding for 14
786	789		violation of G.S. 18D-103(a)(3) may take the following actions after resolution of a charge 15
787	790		against the owner or possessor of products subject to forfeiture under this section: 16
788	791		(1) If the owner or possessor of the product is found guilty of a violation of 17
789	792		G.S. 18D-103(a)(3), the judge shall order the product forfeited. 18
790	793		(2) If the owner or possessor of the product is found not guilty, or if the charge is 19
791	794		dismissed or otherwise resolved in favor of the owner or possessor, the judge 20
792	795		shall order the product returned to the owner or possessor. 21
793	796		(3) If the product is also needed as evidence at an administrative hearing, the 22
794	797		judge shall provide that the order does not go into effect until the ALE 23
795	798		Division determines that the product is no longer needed for the administrative 24
796	799		proceeding. 25
797	800		(d) Disposition after Civil Forfeiture Proceeding. – Violations of G.S. 18D-101(a)(4) 26
798	801		shall be subject to forfeiture under the procedure set forth in G.S. 75D-5. 27
799	802		(e) Disposition of Forfeited Product. – Notwithstanding G.S. 75D-5(j), a judge ordering 28
800	803		forfeiture of property shall order the product destroyed. 29
801	804		(f) Return of Property. – Any owner of products seized for forfeiture may apply to a 30
802	805		judge to have the products returned to the owner if no criminal charge has been made or no action 31
803	806		for civil forfeiture has been commenced in connection with that product within a reasonable time 32
804	807		after seizure. The judge may not order the return of the product if possession by the owner would 33
805	808		be unlawful." 34
806	809		SECTION 1.(b) G.S. 18B-500(b) reads as rewritten: 35
807	810		"(b) Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an 36
808	811		alcohol law-enforcement agent shall have authority to arrest and take other investigatory and 37
809	812		enforcement actions for any criminal offense: 38
810	813		(1) Occurring, encountered, or otherwise discovered on the premises of, or 39
811	814		elsewhere when the conduct relates to, a location under application for or 40
812	815		holding a permit issued by the North Carolina Alcoholic Beverage Control 41
813	816		Commission or the North Carolina Education Lottery Commission. 42
814	817		(1a) Occurring, encountered, or otherwise discovered on the premises of, or 43
815	818		elsewhere when the conduct relates to, a location holding a license issued 44
816	819		pursuant to Chapter 18D of the General Statutes. 45
817	820		(2) Encountered or otherwise discovered while investigating or enforcing matters 46
818	821		for the North Carolina Alcoholic Beverage Control Commission or the North 47
819	822		Carolina Education Lottery Commission or encountered or otherwise 48
820	823		discovered while investigating or enforcing the provisions of this Chapter, 49
821	824		Chapter 18C of the General Statutes, Chapter 18D of the General Statutes, 50 General Assembly Of North Carolina Session 2025
822		-	~~House Bill 607-First Edition~~ Page 17
	825	+	DRH10282-CEf-4 Page 17
823	826		G.S. 14-313, or Parts 1 and 2 of Article 37 of Chapter 14 of the General 1
824	827		Statutes. 2
825	828		(3) Encountered or otherwise discovered while carrying out any duty or function 3
826	829		assigned to the Division by law. 4
827	830		(4) Occurring in an agent's presence. 5
828	831		(5) When assisting another law enforcement agency." 6
829	832		SECTION 1.(c) G.S. 7A-304(a) reads as rewritten: 7
830	833		"(a) In every criminal case in the superior or district court, wherein the defendant is 8
831	834		convicted, or enters a plea of guilty or nolo contendere, or when costs are assessed against the 9
832	835		prosecuting witness, the following costs shall be assessed and collected. No costs may be 10
833	836		assessed when a case is dismissed. Only upon entry of a written order, supported by findings of 11
834	837		fact and conclusions of law, determining that there is just cause, the court may (i) waive costs 12
835	838		assessed under this section or (ii) waive or reduce costs assessed under subdivision (7), (8), (8a), 13
836	839		(11), (12), or (13) of this section. No court may waive or remit all or part of any court fines or 14
837	840		costs without providing notice and opportunity to be heard by all government entities directly 15
838	841		affected. The court shall provide notice to the government entities directly affected of (i) the date 16
839	842		and time of the hearing and (ii) the right to be heard and make an objection to the remission or 17
840	843		waiver of all or part of the order of court costs at least 15 days prior to hearing. Notice shall be 18
841	844		made to the government entities affected by first-class mail to the address provided for receipt of 19
842	845		court costs paid pursuant to the order. The costs referenced in this subsection are listed below: 20
843	846		… 21
844	847		(14) For the services of any laboratory facility, the district or superior court judge 22
845	848		shall, upon conviction, order payment of the sum of six hundred dollars 23
846	849		($600.00) to be remitted to the Alcohol Law Enforcement Division of the 24
847	850		Department of Public Safety (ALE Division) or agency that paid for the 25
848	851		laboratory services. The cost shall be assessed only in cases in which (i) the 26
849	852		defendant is convicted of a violation of G.S. 18D-103(a)(3) and (ii) as part of 27
850	853		the investigation leading to the defendant's conviction, testing was conducted 28
851	854		at a laboratory on products regulated under Chapter 18D of the General 29
852	855		Statutes." 30
853	856		SECTION 1.(d) This section becomes effective July 1, 2026, and applies to all 31
854	857		hemp-derived consumable products possessed, sold, distributed, or manufactured on or after that 32
855	858		date, and to all offenses committed on or after that date. 33
856	859		SECTION 2.(a) G.S. 90-94.1 is repealed. 34
857	860		SECTION 2.(b) This section becomes effective December 1, 2025, and applies to 35
858	861		offenses committed on or after that date. 36
859	862		SECTION 3. Except as otherwise provided, this act is effective when it becomes 37
860	863		law. 38