13 | 13 | | A BILL TO BE ENTITLED 1 |
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14 | 14 | | AN ACT TO REGULATE THE SALE AND DISTRIBUTION OF HEMP -DERIVED 2 |
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15 | 15 | | CONSUMABLE PRODUCTS . 3 |
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16 | 16 | | Whereas, changes to federal law in 2018 related to hemp and associated changes in 4 |
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17 | 17 | | State law have resulted in a surge in the manufacture and sale of intoxicating cannabis products 5 |
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18 | 18 | | in North Carolina; and 6 |
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19 | 19 | | Whereas, these products are being sold by retailers like vape shops, gas stations, and 7 |
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20 | 20 | | convenience stores, as well as online, in various forms such as candy, baked goods, snack foods, 8 |
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21 | 21 | | beverages, and vape pens; and 9 |
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22 | 22 | | Whereas, these products may contain high levels of intoxicating cannabis, however, 10 |
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23 | 23 | | there are no State laws or regulations addressing age limits for the sale of these products, and 11 |
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24 | 24 | | there is no system for identifying or regulating the retailers who sell these products; and 12 |
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25 | 25 | | Whereas, evidence shows that young children and youth can have severe reactions to 13 |
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26 | 26 | | ingesting cannabis, including respiratory depression requiring respiratory support, confusion, and 14 |
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27 | 27 | | intoxication; and 15 |
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28 | 28 | | Whereas, evidence also shows that cannabis use during adolescence and young 16 |
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29 | 29 | | adulthood may harm the developing brain, and youth who use intoxicating cannabis can 17 |
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30 | 30 | | experience multiple negative impacts such as: problems with memory, learning, school and social 18 |
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31 | 31 | | life; impaired driving; the potential for addiction; and increased risk of mental health issues, 19 |
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32 | 32 | | including depression, anxiety, psychosis, schizophrenia, and suicidal behaviors; and 20 |
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33 | 33 | | Whereas, since 2019 and following this surge in the availability of intoxicating 21 |
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34 | 34 | | cannabis products, the rate of emergency department visits in North Carolina for intoxicating 22 |
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35 | 35 | | cannabis ingestion (THC ingestion) among children and youth ages 17 and under increased more 23 |
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36 | 36 | | than 600 percent by 2023, and among older teens the rate increased more than 1,000 percent; and 24 |
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37 | 37 | | Whereas, the State must protect its children under the age of 21 from intoxicating 25 |
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38 | 38 | | cannabis products that can harm their health, development, and safety; Now, therefore, 26 |
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39 | 39 | | The General Assembly of North Carolina enacts: 27 |
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40 | 40 | | SECTION 1. The General Statutes are amended by adding a new Chapter to read: 28 |
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41 | 41 | | "Chapter 18D. 29 |
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42 | 42 | | "Regulation of Hemp-Derived Consumable Products. 30 |
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43 | 43 | | "Article 1. 31 |
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44 | 44 | | "Definitions and Authority. 32 |
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45 | 45 | | "§ 18D-100. Definitions. 33 |
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46 | 46 | | Unless the context requires otherwise, the following definitions apply in this Article: 34 |
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47 | | - | (1) ALE Division. – As defined in G.S. 18B-101. 35 General Assembly Of North Carolina Session 2025 |
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48 | | - | Page 2 House Bill 680-First Edition |
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49 | | - | (2) Commission. – As defined in G.S. 18B-101. 1 |
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50 | | - | (3) Consumer. – An individual who purchases, receives, or possesses 2 |
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51 | | - | hemp-derived consumable products for personal consumption and not for 3 |
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52 | | - | resale. 4 |
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53 | | - | (4) Delivery sale. – A sale of hemp-derived consumable products to a consumer 5 |
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54 | | - | in this State in which either of the following applies: 6 |
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55 | | - | a. The consumer submits the order for the sale by telephone, mail, the 7 |
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56 | | - | internet or other online service or application, or when the seller is 8 |
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57 | | - | otherwise not in the physical presence of the consumer when the 9 |
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58 | | - | consumer submits the order. 10 |
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59 | | - | b. The hemp-derived consumable products are delivered via mail or a 11 |
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60 | | - | delivery service. 12 |
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61 | | - | (5) Delivery seller. – A person located within or outside this State who makes a 13 |
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62 | | - | delivery sale. 14 |
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63 | | - | (6) Delivery seller permit. – A permit issued to a delivery seller pursuant to this 15 |
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64 | | - | Chapter. 16 |
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65 | | - | (7) Delivery service. – A person engaged in the commercial delivery of letters, 17 |
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66 | | - | packages, or other containers. 18 |
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67 | | - | (8) Distribute. – Sell, furnish, give, or provide hemp-derived consumable 19 |
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68 | | - | products to the ultimate consumer. 20 |
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69 | | - | (9) Hemp. – As defined in G.S. 90-87. 21 |
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70 | | - | (10) Hemp-derived cannabinoid. – Any phytocannabinoid found in hemp, 22 |
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71 | | - | including delta-9 tetrahydrocannabinol (delta-9 THC), tetrahydrocannabinolic 23 |
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72 | | - | acid (THCA), cannabidiol (CBD), cannabidiolic acid (CBDA), cannabinol 24 |
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73 | | - | (CBN), cannabigerol (CBG), cannabichromene (CBC), cannabicyclol (CBL), 25 |
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74 | | - | cannabivarin (CBV), tetrahydrocannabivarin (THCV), cannabidivarin 26 |
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75 | | - | (CBDV), cannabicitran (CBT), delta-7 tetrahydrocannabinol (delta-7 THC), 27 |
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76 | | - | delta-8 tetrahydrocannibinol (delta-8 THC), or delta-10 tetrahydrocannibinol 28 |
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77 | | - | (delta-10 THC). This term also includes any artificially produced cannabinoid 29 |
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78 | | - | derived from hemp and contained in a hemp-derived consumable product. 30 |
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79 | | - | (11) Hemp-derived consumable product. – A hemp product that is a finished good 31 |
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80 | | - | intended for human ingestion or inhalation that contains a delta-9 THC 32 |
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81 | | - | concentration of not more than three-tenths of one percent (0.3%) on a dry 33 |
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82 | | - | weight basis, but may contain concentrations of other hemp-derived 34 |
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83 | | - | cannabinoids, in excess of that amount. This term does not include hemp 35 |
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84 | | - | products intended for topical application or seeds or seed-derived ingredients 36 |
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85 | | - | that are generally recognized as safe by the United States Food and Drug 37 |
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86 | | - | Administration (FDA). 38 |
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87 | | - | (12) Hemp-derived consumable product retail sales law. – Any statute or statutes 39 |
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88 | | - | in this Chapter and the rules issued by the Commission under the authority of 40 |
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89 | | - | this Chapter. 41 |
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90 | | - | (13) Hemp product. – As defined in G.S. 90-87. 42 |
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91 | | - | (14) Ingestion. – The process of consuming hemp through the mouth, by 43 |
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92 | | - | swallowing into the gastrointestinal system or through tissue absorption. 44 |
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93 | | - | (15) Inhalation. – The process of consuming hemp into the respiratory system 45 |
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94 | | - | through the mouth or nasal passages. 46 |
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95 | | - | (16) Packaging. – The individual packet, can, box, or other container used to 47 |
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96 | | - | contain and to convey hemp-derived consumable products to the consumer. 48 |
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97 | | - | (17) Permit. – A permit issued pursuant to this Chapter, unless the context clearly 49 |
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98 | | - | requires otherwise. 50 General Assembly Of North Carolina Session 2025 |
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99 | | - | House Bill 680-First Edition Page 3 |
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| 47 | + | (1) ALE Division. – As defined in G.S. 18B-101. 35 |
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| 48 | + | (2) Commission. – As defined in G.S. 18B-101. 36 |
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| 49 | + | H.B. 680 |
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| 50 | + | Apr 1, 2025 |
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| 51 | + | HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025 |
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| 52 | + | Page 2 DRH10332-MLf-74C |
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| 53 | + | (3) Consumer. – An individual who purchases, receives, or possesses 1 |
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| 54 | + | hemp-derived consumable products for personal consumption and not for 2 |
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| 55 | + | resale. 3 |
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| 56 | + | (4) Delivery sale. – A sale of hemp-derived consumable products to a consumer 4 |
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| 57 | + | in this State in which either of the following applies: 5 |
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| 58 | + | a. The consumer submits the order for the sale by telephone, mail, the 6 |
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| 59 | + | internet or other online service or application, or when the seller is 7 |
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| 60 | + | otherwise not in the physical presence of the consumer when the 8 |
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| 61 | + | consumer submits the order. 9 |
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| 62 | + | b. The hemp-derived consumable products are delivered via mail or a 10 |
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| 63 | + | delivery service. 11 |
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| 64 | + | (5) Delivery seller. – A person located within or outside this State who makes a 12 |
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| 65 | + | delivery sale. 13 |
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| 66 | + | (6) Delivery seller permit. – A permit issued to a delivery seller pursuant to this 14 |
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| 67 | + | Chapter. 15 |
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| 68 | + | (7) Delivery service. – A person engaged in the commercial delivery of letters, 16 |
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| 69 | + | packages, or other containers. 17 |
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| 70 | + | (8) Distribute. – Sell, furnish, give, or provide hemp-derived consumable 18 |
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| 71 | + | products to the ultimate consumer. 19 |
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| 72 | + | (9) Hemp. – As defined in G.S. 90-87. 20 |
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| 73 | + | (10) Hemp-derived cannabinoid. – Any phytocannabinoid found in hemp, 21 |
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| 74 | + | including delta-9 tetrahydrocannabinol (delta-9 THC), tetrahydrocannabinolic 22 |
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| 75 | + | acid (THCA), cannabidiol (CBD), cannabidiolic acid (CBDA), cannabinol 23 |
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| 76 | + | (CBN), cannabigerol (CBG), cannabichromene (CBC), cannabicyclol (CBL), 24 |
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| 77 | + | cannabivarin (CBV), tetrahydrocannabivarin (THCV), cannabidivarin 25 |
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| 78 | + | (CBDV), cannabicitran (CBT), delta-7 tetrahydrocannabinol (delta-7 THC), 26 |
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| 79 | + | delta-8 tetrahydrocannibinol (delta-8 THC), or delta-10 tetrahydrocannibinol 27 |
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| 80 | + | (delta-10 THC). This term also includes any artificially produced cannabinoid 28 |
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| 81 | + | derived from hemp and contained in a hemp-derived consumable product. 29 |
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| 82 | + | (11) Hemp-derived consumable product. – A hemp product that is a finished good 30 |
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| 83 | + | intended for human ingestion or inhalation that contains a delta-9 THC 31 |
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| 84 | + | concentration of not more than three-tenths of one percent (0.3%) on a dry 32 |
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| 85 | + | weight basis, but may contain concentrations of other hemp-derived 33 |
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| 86 | + | cannabinoids, in excess of that amount. This term does not include hemp 34 |
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| 87 | + | products intended for topical application or seeds or seed-derived ingredients 35 |
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| 88 | + | that are generally recognized as safe by the United States Food and Drug 36 |
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| 89 | + | Administration (FDA). 37 |
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| 90 | + | (12) Hemp-derived consumable product retail sales law. – Any statute or statutes 38 |
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| 91 | + | in this Chapter and the rules issued by the Commission under the authority of 39 |
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| 92 | + | this Chapter. 40 |
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| 93 | + | (13) Hemp product. – As defined in G.S. 90-87. 41 |
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| 94 | + | (14) Ingestion. – The process of consuming hemp through the mouth, by 42 |
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| 95 | + | swallowing into the gastrointestinal system or through tissue absorption. 43 |
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| 96 | + | (15) Inhalation. – The process of consuming hemp into the respiratory system 44 |
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| 97 | + | through the mouth or nasal passages. 45 |
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| 98 | + | (16) Packaging. – The individual packet, can, box, or other container used to 46 |
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| 99 | + | contain and to convey hemp-derived consumable products to the consumer. 47 |
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| 100 | + | (17) Permit. – A permit issued pursuant to this Chapter, unless the context clearly 48 |
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| 101 | + | requires otherwise. 49 General Assembly Of North Carolina Session 2025 |
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| 102 | + | DRH10332-MLf-74C Page 3 |
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100 | 103 | | (18) Person. – An individual, firm, partnership, association, corporation, limited 1 |
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101 | 104 | | liability company, other organization or group, or other combination of 2 |
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102 | 105 | | individuals acting as a unit. 3 |
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103 | 106 | | (19) Premises. – A fixed permanent establishment, including all areas inside or 4 |
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104 | 107 | | outside the licensed establishment, where the permittee has control through a 5 |
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105 | 108 | | lease, deed, or other legal process. 6 |
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106 | 109 | | (20) Proof of age. – A drivers license, a special identification card issued under 7 |
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107 | 110 | | G.S. 20-37.7 or issued by the state agency of any other state authorized to 8 |
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108 | 111 | | issue similar official state special identification cards for that state, a military 9 |
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109 | 112 | | identification card, or a passport showing the purchaser's age to be at least the 10 |
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110 | 113 | | required age for purchase and bearing a physical description of the person 11 |
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111 | 114 | | named on the card reasonably describing the purchaser. 12 |
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112 | 115 | | (21) Retail dealer. – A person who sells a hemp-derived consumable product to the 13 |
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113 | 116 | | ultimate consumer of the product, including a delivery seller. 14 |
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114 | 117 | | (22) Retail seller. – A retail dealer who is not a delivery seller. 15 |
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115 | 118 | | (23) Retail seller permit. – A permit issued to a retail seller pursuant to this Chapter. 16 |
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116 | 119 | | (24) Sale. – As defined in G.S. 105-113.4. 17 |
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117 | 120 | | (25) Sample. – A hemp-derived consumable product distributed to members of the 18 |
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118 | 121 | | general public at no cost for the purpose of promoting the product. 19 |
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119 | 122 | | "§ 18D-101. Powers and duties of the Commission. 20 |
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120 | 123 | | (a) The Commission shall have the authority to do all of the following: 21 |
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121 | 124 | | (1) Administer the hemp-derived consumable product retail sales laws pursuant 22 |
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122 | 125 | | to this Chapter. 23 |
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123 | 126 | | (2) Provide for enforcement of the hemp-derived consumable product retail sales 24 |
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124 | 127 | | laws pursuant to this Chapter, in conjunction with the ALE Division. 25 |
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125 | 128 | | (3) Issue permits and impose sanctions against permittees in accordance with this 26 |
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126 | 129 | | Chapter. 27 |
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127 | 130 | | (b) The Commission shall have all other powers which may be reasonably implied from 28 |
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128 | 131 | | the granting of the express powers listed in subsection (a) of this section, or which may be 29 |
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129 | 132 | | incidental to, or convenient for, performing the duties given to the Commission. 30 |
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130 | 133 | | "§ 18D-102. Inspection of licensed premises. 31 |
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131 | 134 | | (a) To procure evidence of violations of the hemp-derived consumable product retail 32 |
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132 | 135 | | sales law, alcohol law enforcement agents and employees of the Commission shall have authority 33 |
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133 | 136 | | to investigate the operation of each licensed premises for which a permit has been issued, to make 34 |
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134 | 137 | | inspections that include viewing the entire premises, and to examine the books and records of the 35 |
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135 | 138 | | permittee. The inspection authorized by this section may be made at any time it reasonably 36 |
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136 | 139 | | appears that someone is on the premises. 37 |
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137 | 140 | | (b) Refusal by a permittee or by any employee of a permittee to allow officers or 38 |
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138 | 141 | | employees of the Commission to enter the premises to make an inspection authorized by 39 |
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139 | 142 | | subsection (a) of this section shall be cause for revocation, suspension, or other action against the 40 |
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140 | 143 | | permit or the permittee as provided in G.S. 18D-103. It shall be a Class 2 misdemeanor for any 41 |
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141 | 144 | | person to resist or obstruct an officer attempting to make a lawful inspection under this section. 42 |
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142 | 145 | | "§ 18D-103. Administrative penalties. 43 |
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143 | 146 | | (a) For any violation of the hemp-derived consumable product retail sales laws, the 44 |
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144 | 147 | | Commission may take any of the following actions against a permittee: 45 |
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145 | 148 | | (1) Suspend the permittee's permit for a specified period of time not longer than 46 |
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146 | 149 | | three years. 47 |
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147 | 150 | | (2) Revoke the permittee's permit. 48 |
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148 | 151 | | (3) Fine the permittee up to five hundred dollars ($500.00) for the first violation, 49 |
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149 | 152 | | up to seven hundred fifty dollars ($750.00) for the second violation within 50 General Assembly Of North Carolina Session 2025 |
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151 | 154 | | three years, and up to one thousand dollars ($1,000) for the third violation 1 |
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152 | 155 | | within three years of the first violation. 2 |
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153 | 156 | | (4) Suspend the permittee's permit under subdivision (1) of this subsection and 3 |
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154 | 157 | | impose a fine under subdivision (3) of this subsection. 4 |
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155 | 158 | | (b) In any case in which the Commission is entitled to suspend or revoke a permit, the 5 |
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156 | 159 | | Commission may accept from the permittee an offer in compromise to pay a penalty of not more 6 |
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157 | 160 | | than five thousand dollars ($5,000). The Commission may either accept a compromise or revoke 7 |
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158 | 161 | | a permit, but not both. The Commission may accept a compromise and suspend the permit in the 8 |
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159 | 162 | | same case. 9 |
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160 | 163 | | (c) The clear proceeds of fines and penalties assessed pursuant to this section shall be 10 |
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161 | 164 | | remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 11 |
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162 | 165 | | (d) Suspension or revocation of a permit is grounds for suspension or revocation of any 12 |
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163 | 166 | | related State or local revenue license. 13 |
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164 | 167 | | (e) Unless some other disposition is ordered by the Commission for a hemp-derived 14 |
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165 | 168 | | consumable product retail sales law violation, revocation or suspension of a permit under 15 |
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166 | 169 | | subsection (a) of this section does not include automatic revocation or suspension, respectively, 16 |
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167 | 170 | | of any ABC permit held by the same permittee for the same establishment. 17 |
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168 | 171 | | "§ 18D-104. Rules. 18 |
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169 | 172 | | The Commission shall have authority to adopt, amend, and repeal rules to carry out the 19 |
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170 | 173 | | provisions of this Chapter. Those rules shall become effective when adopted and filed pursuant 20 |
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171 | 174 | | to the provisions of Chapter 150B of the General Statutes. 21 |
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172 | 175 | | "§ 18D-105. Applicability of Administrative Procedure Act. 22 |
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173 | 176 | | (a) A permit is a "license" within the meaning of G.S. 150B-2 and, except for a 23 |
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174 | 177 | | confirmation pursuant to G.S. 18D-300(a)(7), a Commission action on issuance, suspension, or 24 |
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175 | 178 | | revocation of a permit, other than a temporary permit issued under G.S. 18D-304, is a "contested 25 |
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176 | 179 | | case" subject to the provisions of Chapter 150B of the General Statutes, except as provided in 26 |
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177 | 180 | | this section. 27 |
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178 | 181 | | (b) Hearings on permits shall be held within 100 miles, as best can be determined by the 28 |
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179 | 182 | | Commission, of the county seat of the county in which the licensed business or proposed business 29 |
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180 | 183 | | is located. The hearing may be held, however, at any place upon agreement of the Commission 30 |
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181 | 184 | | and all other parties. 31 |
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182 | 185 | | (c) In making a final decision in a contested case in which an issue is whether to deny an 32 |
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183 | 186 | | application for a permit because the applicant is unsuitable, the Commission may hear evidence 33 |
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184 | 187 | | of acts that occurred after the date the contested case hearing was held if the evidence is 34 |
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185 | 188 | | admissible under G.S. 150B-29(a). New evidence heard under this subsection is not grounds for 35 |
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186 | 189 | | reversal or remand under G.S. 150B-51(a). 36 |
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187 | 190 | | "Article 2. 37 |
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188 | 191 | | "Sales. 38 |
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189 | 192 | | "§ 18D-200. Permit required. 39 |
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190 | 193 | | (a) It is unlawful to sell a hemp-derived consumable product to a consumer in this State 40 |
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191 | 194 | | without a permit issued by the Commission in accordance with this Chapter. 41 |
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192 | 195 | | (b) Notwithstanding subsection (a) of this section, no permit issued pursuant to this 42 |
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193 | 196 | | Chapter shall be required by a delivery service making deliveries on behalf of another person 43 |
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194 | 197 | | holding a permit issued pursuant to this Chapter. 44 |
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195 | 198 | | "§ 18D-201. Disposition of seized hemp-derived consumable products. 45 |
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196 | 199 | | (a) A law enforcement officer who seizes hemp-derived consumable products as 46 |
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197 | 200 | | evidence of a hemp-derived consumable product retail sales law violation shall provide for the 47 |
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198 | 201 | | storage of those hemp-derived consumable products until the commencement of the trial or 48 |
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199 | 202 | | administrative hearing relating to the violation, unless some other disposition is authorized under 49 |
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200 | 203 | | this section. 50 General Assembly Of North Carolina Session 2025 |
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202 | 205 | | (b) After giving notice to each defendant, to any other known owner, and to the 1 |
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203 | 206 | | Commission, a judge may order any of the following dispositions of the hemp-derived 2 |
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204 | 207 | | consumable products seized as evidence of a hemp-derived consumable product retail sales law 3 |
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205 | 208 | | violation: 4 |
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206 | 209 | | (1) The destruction of any hemp-derived consumable products except that amount 5 |
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207 | 210 | | needed for evidence at trial. 6 |
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208 | 211 | | (2) The sale of any hemp-derived consumable products other than any 7 |
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209 | 212 | | hemp-derived consumable products needed for evidence at trial, if the trial is 8 |
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210 | 213 | | likely to be delayed for more than 90 days, or if the quantity or nature of the 9 |
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211 | 214 | | hemp-derived consumable products is such that storage is impractical or 10 |
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212 | 215 | | unduly expensive. 11 |
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213 | 216 | | (3) The destruction of the hemp-derived consumable products if storage or sale is 12 |
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214 | 217 | | not practical. 13 |
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215 | 218 | | (4) Continued storage of the hemp-derived consumable products. 14 |
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216 | 219 | | (c) After the criminal charge is resolved, a judge may order any of the following 15 |
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217 | 220 | | dispositions of the seized hemp-derived consumable products: 16 |
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218 | 221 | | (1) If the owner or possessor of the hemp-derived consumable products is found 17 |
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219 | 222 | | guilty of a criminal charge relating to those hemp-derived consumable 18 |
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220 | 223 | | products, the judge may order the sale or destruction of any hemp-derived 19 |
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221 | 224 | | consumable products that were held until trial. 20 |
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222 | 225 | | (2) If the owner or possessor of the hemp-derived consumable products is found 21 |
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223 | 226 | | not guilty, or if charges are dismissed or otherwise resolved in favor of the 22 |
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224 | 227 | | owner or possessor, the judge shall order the hemp-derived consumable 23 |
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225 | 228 | | products returned to that owner or possessor, except as provided in 24 |
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226 | 229 | | subdivision (3) of this subsection. 25 |
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227 | 230 | | (3) If the owner or possessor of the hemp-derived consumable products is found 26 |
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228 | 231 | | not guilty, or if charges are otherwise resolved in favor of the owner or 27 |
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229 | 232 | | possessor, but possession of the hemp-derived consumable products by that 28 |
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230 | 233 | | owner or possessor would be unlawful, the judge shall order the hemp-derived 29 |
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231 | 234 | | consumable products either sold or destroyed. 30 |
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232 | 235 | | (4) If ownership of the hemp-derived consumable products remains uncertain 31 |
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233 | 236 | | after trial or after the charges have been dismissed, the judge may order the 32 |
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234 | 237 | | hemp-derived consumable products held for a specified time, until ownership 33 |
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235 | 238 | | of the hemp-derived consumable products can be determined. 34 |
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236 | 239 | | (d) If hemp-derived consumable products used as evidence in a criminal proceeding are 35 |
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237 | 240 | | also needed as evidence at an administrative hearing, a judge shall not order any of the 36 |
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238 | 241 | | dispositions set out in subsection (c) of this section but shall order the hemp-derived consumable 37 |
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239 | 242 | | products held for the administrative hearing and for a determination of final disposition by the 38 |
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240 | 243 | | Commission. The Commission may, before or after an administrative hearing, order any of the 39 |
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241 | 244 | | dispositions authorized under subsections (b) and (c) of this section. If no related criminal 40 |
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242 | 245 | | proceeding has commenced, the Commission shall not order destruction of the hemp-derived 41 |
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243 | 246 | | consumable products until notice has been given to the district attorney for the district where the 42 |
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244 | 247 | | hemp-derived consumable products were seized or any violation of hemp-derived consumable 43 |
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245 | 248 | | product retail sales laws related to the seizure of the hemp-derived consumable products is likely 44 |
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246 | 249 | | to be prosecuted. 45 |
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247 | 250 | | (e) The sale of hemp-derived consumable products shall be by public auction to a 46 |
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248 | 251 | | hemp-derived consumable products manufacturer, a hemp-derived consumable products 47 |
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249 | 252 | | wholesaler, or a person holding a permit issued under this Chapter. 48 |
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250 | 253 | | (f) An agency selling hemp-derived consumable products seized under the provisions of 49 |
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251 | 254 | | this Chapter shall keep the proceeds in a separate account until some other disposition is ordered 50 |
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252 | 255 | | by a judge or the Commission. In a criminal proceeding, if the owner or possessor of the 51 General Assembly Of North Carolina Session 2025 |
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254 | 257 | | hemp-derived consumable products is found guilty of a violation relating to seizure of the 1 |
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255 | 258 | | hemp-derived consumable products, if the owner or possessor is found not guilty or the charge 2 |
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256 | 259 | | is dismissed or otherwise resolved in favor of the owner or possessor, but the possession of the 3 |
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257 | 260 | | hemp-derived consumable products by that owner or possessor would be unlawful, or if the 4 |
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258 | 261 | | ownership of the hemp-derived consumable products cannot be determined, the proceeds from 5 |
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259 | 262 | | the sale of those hemp-derived consumable products shall be paid to the school fund of the county 6 |
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260 | 263 | | in which the hemp-derived consumable products were seized. If the owner or possessor of the 7 |
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261 | 264 | | hemp-derived consumable products seized for violation of the hemp-derived consumable product 8 |
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262 | 265 | | retail sales laws is found not guilty of criminal charges relating to the seizure of those 9 |
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263 | 266 | | hemp-derived consumable products or the charge is dismissed or otherwise resolved in favor of 10 |
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264 | 267 | | the owner or possessor, and if possession of the hemp-derived consumable products by that 11 |
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265 | 268 | | owner or possessor was lawful when the hemp-derived consumable products were seized, the 12 |
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266 | 269 | | proceeds from the sale of those hemp-derived consumable products shall be paid to the owner or 13 |
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267 | 270 | | possessor. The agency making the sale may deduct and retain from the amount to be placed in 14 |
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268 | 271 | | the county school fund the costs of storing the seized hemp-derived consumable products and of 15 |
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269 | 272 | | conducting the sale but may not deduct those costs from the amount to be turned over to an owner 16 |
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270 | 273 | | or possessor of the hemp-derived consumable products. 17 |
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271 | 274 | | (g) Any person who claims any of the following resulting from the seizure of 18 |
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272 | 275 | | hemp-derived consumable products may bring an action in the superior court of the county in 19 |
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273 | 276 | | which the hemp-derived consumable products were seized: 20 |
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274 | 277 | | (1) To be the owner of hemp-derived consumable products that are wrongfully 21 |
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275 | 278 | | held. 22 |
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276 | 279 | | (2) To be the owner of hemp-derived consumable products that are needed as 23 |
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277 | 280 | | evidence in another proceeding. 24 |
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278 | 281 | | (3) To be entitled to proceeds from a sale of the hemp-derived consumable 25 |
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279 | 282 | | products. 26 |
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280 | 283 | | (4) To be entitled to restitution for hemp-derived consumable products 27 |
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281 | 284 | | wrongfully destroyed. 28 |
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282 | 285 | | "§ 18D-202. Forfeiture. 29 |
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283 | 286 | | (a) Hemp-derived consumable products possessed or sold in violation of the 30 |
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284 | 287 | | hemp-derived consumable product retail sales laws shall be subject to forfeiture. 31 |
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285 | 288 | | (b) Hemp-derived consumable products which may be possessed lawfully shall not be 32 |
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286 | 289 | | subject to forfeiture when they were used unlawfully by someone other than the owner of the 33 |
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287 | 290 | | hemp-derived consumable products and the owner did not consent to the unlawful use. 34 |
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288 | 291 | | (c) If hemp-derived consumable products subject to forfeiture have not already been 35 |
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289 | 292 | | seized as part of an arrest or search, a law enforcement officer may apply to a judge for an order 36 |
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290 | 293 | | authorizing seizure of that hemp-derived consumable product. An order for seizure may be issued 37 |
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291 | 294 | | only after criminal process has been issued for hemp-derived consumable product retail sales law 38 |
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292 | 295 | | violation in connection with that hemp-derived consumable product. The order shall describe the 39 |
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293 | 296 | | hemp-derived consumable product to be seized and shall state the facts establishing probable 40 |
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294 | 297 | | cause to believe that the hemp-derived consumable product is subject to forfeiture. 41 |
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295 | 298 | | (d) A law enforcement officer seizing the hemp-derived consumable product subject to 42 |
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296 | 299 | | forfeiture shall provide for its safe storage until trial. 43 |
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297 | 300 | | (e) The presiding judge in a criminal proceeding for violation of hemp-derived 44 |
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298 | 301 | | consumable product retail sales laws may take any of the following actions after resolution of a 45 |
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299 | 302 | | charge against the owner or possessor of the hemp-derived consumable product subject to 46 |
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300 | 303 | | forfeiture under this section: 47 |
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301 | 304 | | (1) If the owner or possessor of the hemp-derived consumable product is found 48 |
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302 | 305 | | guilty of a hemp-derived consumable product retail sales offense, the judge 49 |
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303 | 306 | | may order the hemp-derived consumable product forfeited. 50 General Assembly Of North Carolina Session 2025 |
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305 | 308 | | (2) If the owner or possessor of the hemp-derived consumable product is found 1 |
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306 | 309 | | not guilty, or if the charge is dismissed or otherwise resolved in favor of the 2 |
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307 | 310 | | owner or possessor, the judge shall order the hemp-derived consumable 3 |
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308 | 311 | | product returned to the owner or possessor. 4 |
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309 | 312 | | (3) If ownership of the hemp-derived consumable product remains uncertain after 5 |
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310 | 313 | | trial, the judge may order the hemp-derived consumable product held for a 6 |
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311 | 314 | | specified time to determine ownership. If the judge finds that ownership 7 |
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312 | 315 | | cannot be determined with reasonable effort, the judge shall order the 8 |
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313 | 316 | | hemp-derived consumable product forfeited. 9 |
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314 | 317 | | (4) Regardless of the disposition of the charge, if the hemp-derived consumable 10 |
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315 | 318 | | product is something that may not be possessed lawfully, the judge shall order 11 |
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316 | 319 | | it forfeited. 12 |
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317 | 320 | | (5) If the hemp-derived consumable product is also needed as evidence at an 13 |
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318 | 321 | | administrative hearing, the judge shall provide that the order does not go into 14 |
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319 | 322 | | effect until the Commission determines that the hemp-derived consumable 15 |
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320 | 323 | | product is no longer needed for the administrative proceeding. 16 |
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321 | 324 | | (f) A judge ordering forfeiture of the hemp-derived consumable product may order any 17 |
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322 | 325 | | one of the following dispositions: 18 |
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323 | 326 | | (1) Sale at public auction to a hemp-derived consumable products manufacturer, 19 |
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324 | 327 | | a hemp-derived consumable products wholesaler, or a person holding a permit 20 |
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325 | 328 | | issued under this Chapter. 21 |
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326 | 329 | | (2) Destruction, if possession of the hemp-derived consumable product would be 22 |
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327 | 330 | | unlawful or if sale or other disposition is not practical. 23 |
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328 | 331 | | (g) If the forfeited hemp-derived consumable product is sold, the proceeds of that sale 24 |
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329 | 332 | | shall be paid to the school fund of the county in which the hemp-derived consumable product 25 |
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330 | 333 | | was seized, except as provided in subsection (h) of this section. Before placing the hemp-derived 26 |
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331 | 334 | | consumable product proceeds in the school fund, the agency making the sale may deduct and 27 |
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332 | 335 | | retain the costs of storing the hemp-derived consumable product and conducting the sale. 28 |
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333 | 336 | | (h) At any time before forfeiture is ordered, an owner of the seized hemp-derived 29 |
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334 | 337 | | consumable product or a holder of a security interest in the seized hemp-derived consumable 30 |
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335 | 338 | | product, other than the defendant, may apply to protect the person's interest in the hemp-derived 31 |
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336 | 339 | | consumable product. The application may be made to any judge who has jurisdiction to try the 32 |
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337 | 340 | | offense with which the hemp-derived consumable product is associated. If the judge finds that 33 |
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338 | 341 | | the hemp-derived consumable product owner or holder of a security interest did not consent to 34 |
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339 | 342 | | the unlawful use of the hemp-derived consumable product, and that the hemp-derived 35 |
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340 | 343 | | consumable product may be possessed lawfully by the owner or holder, the judge may order any 36 |
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341 | 344 | | of the following: 37 |
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342 | 345 | | (1) That the hemp-derived consumable product be returned to the owner, if it is 38 |
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343 | 346 | | not needed as evidence at trial. 39 |
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344 | 347 | | (2) That the hemp-derived consumable product be returned to the owner 40 |
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345 | 348 | | following trial or other resolution of the case. 41 |
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346 | 349 | | (3) That, if the hemp-derived consumable product is sold following trial, a 42 |
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347 | 350 | | specified sum be paid from the proceeds of that sale to the holder of the 43 |
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348 | 351 | | security interest. 44 |
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349 | 352 | | (i) When the hemp-derived consumable product is seized for forfeiture but the owner is 45 |
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350 | 353 | | unknown, the district attorney may seek forfeiture under this section by an action in rem against 46 |
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351 | 354 | | the hemp-derived consumable product. If the owner is known and has been charged with an 47 |
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352 | 355 | | offense but is unavailable for trial, the district attorney may seek forfeiture either by an action in 48 |
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353 | 356 | | rem against the hemp-derived consumable product or by motion in the criminal action. 49 |
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354 | 357 | | (j) Any owner of a hemp-derived consumable product seized for forfeiture may apply to 50 |
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355 | 358 | | a judge to have the hemp-derived consumable product returned to him if no criminal charge has 51 General Assembly Of North Carolina Session 2025 |
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357 | 360 | | been made in connection with that hemp-derived consumable product within a reasonable time 1 |
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358 | 361 | | after seizure. The judge may not order the return of the hemp-derived consumable product if 2 |
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359 | 362 | | possession by the owner would be unlawful. 3 |
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360 | 363 | | "Article 3. 4 |
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361 | 364 | | "Issuance of Permits. 5 |
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362 | 365 | | "§ 18D-300. Qualifications for a permit. 6 |
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363 | 366 | | (a) To be eligible to receive and to hold a permit under this Chapter, a person must satisfy 7 |
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364 | 367 | | all of the following requirements: 8 |
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365 | 368 | | (1) Be at least 21 years old. 9 |
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366 | 369 | | (2) Be a resident of North Carolina, unless either of the following applies: 10 |
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367 | 370 | | a. The person is an officer, director, or stockholder of a corporate 11 |
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368 | 371 | | applicant or permittee and is not a manager or otherwise responsible 12 |
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369 | 372 | | for the day-to-day operation of the business. 13 |
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370 | 373 | | b. The person has executed a power of attorney designating a qualified 14 |
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371 | 374 | | resident of this State to serve as attorney-in-fact for the purposes of 15 |
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372 | 375 | | receiving service of process and managing the business for which 16 |
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373 | 376 | | permits are sought. 17 |
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374 | 377 | | (3) Not have been convicted of a felony within three years and, if convicted of a 18 |
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375 | 378 | | felony before then, have had his or her citizenship restored. 19 |
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376 | 379 | | (4) Not have been convicted of a hemp-derived consumable product retail sales 20 |
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377 | 380 | | law within five years. 21 |
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378 | 381 | | (5) Not have been convicted of a misdemeanor controlled substance offense 22 |
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379 | 382 | | within five years. 23 |
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380 | 383 | | (6) Not have had a permit issued under this Chapter revoked within five years, 24 |
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381 | 384 | | except where the revocation was based solely on a permittee's failure to pay 25 |
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382 | 385 | | the annual renewal fee required in G.S. 18D-302(d). 26 |
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383 | 386 | | (7) Be current in filing all applicable tax returns to the State and in payment of all 27 |
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384 | 387 | | taxes, interest, and penalties that are collectible under G.S. 105-241.22. 28 |
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385 | 388 | | To avoid undue hardship, however, the Commission may decline to take action under 29 |
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386 | 389 | | G.S. 18D-103 against a permittee who is in violation of subdivision (3), (4), or (5) of this 30 |
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387 | 390 | | subsection. 31 |
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388 | 391 | | (b) A person has been "convicted" for the purposes of subsection (a) of this section when 32 |
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389 | 392 | | the person has been found guilty or has entered a plea of guilty or nolo contendere and judgment 33 |
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390 | 393 | | has been entered. A felony conviction in another jurisdiction disqualifies a person from being 34 |
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391 | 394 | | eligible to receive or hold a permit under this Chapter if the conduct would also constitute a 35 |
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392 | 395 | | felony in North Carolina. A conviction of a hemp-derived consumable product retail sales law or 36 |
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393 | 396 | | misdemeanor drug offense in another jurisdiction disqualifies a person from being eligible to 37 |
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394 | 397 | | receive or hold a permit under this Chapter if the conduct would constitute an offense in North 38 |
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395 | 398 | | Carolina, unless the Commission determines that under North Carolina procedure judgment 39 |
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396 | 399 | | would not have been entered under the same circumstances. Revocation of a permit in another 40 |
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397 | 400 | | jurisdiction disqualifies a person if the conduct would be grounds for revocation of a permit under 41 |
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398 | 401 | | this Chapter in North Carolina. 42 |
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399 | 402 | | (c) For a permit to be issued to and held for a business, each of the following persons 43 |
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400 | 403 | | associated with that business must qualify under subsection (a) of this section: 44 |
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401 | 404 | | (1) The owner of a sole proprietorship. 45 |
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402 | 405 | | (2) Each member of a firm, association, or general partnership. 46 |
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403 | 406 | | (3) Each general partner in a limited partnership. 47 |
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404 | 407 | | (4) Each manager and any member with a twenty-five percent (25%) or greater 48 |
---|
405 | 408 | | interest in a limited liability company. 49 |
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406 | 409 | | (5) Each officer, director, and owner of twenty-five percent (25%) or more of the 50 |
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407 | 410 | | stock of a corporation except that the requirement of subdivision (1) of 51 General Assembly Of North Carolina Session 2025 |
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409 | 412 | | subsection (a) of this section does not apply to the officer, director, or 1 |
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410 | 413 | | stockholder unless he or she is a manager or is otherwise responsible for the 2 |
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411 | 414 | | day-to-day operation of the business. 3 |
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412 | 415 | | (6) The manager of an establishment operated by a corporation. 4 |
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413 | 416 | | (7) Any manager who has been empowered as attorney-in-fact for a nonresident 5 |
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414 | 417 | | individual or partnership. 6 |
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415 | 418 | | (8) Any manager or person otherwise responsible for the day-to-day operation of 7 |
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416 | 419 | | the business, if none of the persons listed in subdivisions (1) through (7) of 8 |
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417 | 420 | | this subsection are a manager or person otherwise responsible for the 9 |
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418 | 421 | | day-to-day operation of the business. 10 |
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419 | 422 | | (d) Upon request of the Commission, the Department of Revenue shall provide 11 |
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420 | 423 | | information to the Commission to confirm a person's compliance with subdivision (7) of 12 |
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421 | 424 | | subsection (a) of this section. If the Department of Revenue notifies the Commission that a person 13 |
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422 | 425 | | is not in compliance, then the Commission may not issue or renew the person's permit until the 14 |
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423 | 426 | | Commission receives notice from the Department of Revenue that the person is in compliance. 15 |
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424 | 427 | | The requirement to pay all taxes, interest, and penalties may be satisfied by an operative 16 |
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425 | 428 | | agreement under G.S. 105-237 covering any amounts that are collectible under G.S. 105-241.22. 17 |
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426 | 429 | | Chapter 150B of the General Statutes does not apply to a Commission action on issuance, 18 |
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427 | 430 | | suspension, or revocation of a permit under subdivision (7) of subsection (a) of this section. 19 |
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428 | 431 | | "§ 18D-301. Issuance of permits. 20 |
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429 | 432 | | (a) All permits shall be issued by the Commission. 21 |
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430 | 433 | | (b) Before issuing a permit, the Commission shall be satisfied that the applicant is a 22 |
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431 | 434 | | suitable person to hold a permit and that the location is a suitable place to hold the permit for 23 |
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432 | 435 | | which the applicant has applied. Factors the Commission shall consider in determining whether 24 |
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433 | 436 | | the applicant and the business location are suitable are all of the following: 25 |
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434 | 437 | | (1) The reputation, character, and criminal record of the applicant. 26 |
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435 | 438 | | (2) Any other evidence that would tend to show whether the applicant would 27 |
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436 | 439 | | comply with the hemp-derived consumable product retail sales laws. 28 |
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437 | 440 | | (3) Whether the operation of the retail seller permit applicant's business at that 29 |
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438 | 441 | | location would be detrimental to the neighborhood, including evidence 30 |
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439 | 442 | | admissible under G.S. 150B-29(a) of any of the following: 31 |
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440 | 443 | | a. Past revocations, suspensions, and violations of ABC laws by prior 32 |
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441 | 444 | | permittees related to or associated with the applicant, or a business 33 |
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442 | 445 | | with which the applicant is associated, within the immediate preceding 34 |
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443 | 446 | | 12-month period at this location. 35 |
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444 | 447 | | b. Evidence of illegal drug activity on or about the licensed premises. 36 |
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445 | 448 | | c. Evidence of fighting, disorderly conduct, and other dangerous 37 |
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446 | 449 | | activities on or about the licensed premises. 38 |
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447 | 450 | | (c) The Commission shall have the sole power, in its discretion, to determine the 39 |
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448 | 451 | | suitability and qualifications of an applicant for a permit. The Commission shall also have the 40 |
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449 | 452 | | authority to determine the suitability of the location to which the permit may be issued. 41 |
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450 | 453 | | "§ 18D-302. Application for permit; fees. 42 |
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451 | 454 | | (a) An application for a permit shall be on a form prescribed by the Commission and shall 43 |
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452 | 455 | | be notarized in accordance with Chapter 10B of the General Statutes. Each person required to 44 |
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453 | 456 | | qualify under G.S. 18D-300(c) shall sign and swear to the application and submit a full set of 45 |
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454 | 457 | | fingerprints with the application. 46 |
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455 | 458 | | (b) Before issuing a new permit, the Commission, with the assistance of the ALE 47 |
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456 | 459 | | Division, shall investigate the applicant and, for a retail seller permit, the premises for which the 48 |
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457 | 460 | | permit is requested. An applicant shall cooperate fully with the investigation. The State Bureau 49 |
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458 | 461 | | of Investigation may provide a criminal record check to the ALE Division for a person who has 50 |
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459 | 462 | | applied for a permit through the Commission. The ALE Division shall provide to the State Bureau 51 General Assembly Of North Carolina Session 2025 |
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461 | 464 | | of Investigation, along with the request, the fingerprints of the applicant, any additional 1 |
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462 | 465 | | information required by the State Bureau of Investigation, and a form signed by the applicant 2 |
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463 | 466 | | consenting to the check of the criminal record and to the use of the fingerprints and other 3 |
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464 | 467 | | identifying information required by the State or national repositories. The applicant's fingerprints 4 |
---|
465 | 468 | | shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history 5 |
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466 | 469 | | record file, and the State Bureau of Investigation shall forward a set of the fingerprints to the 6 |
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467 | 470 | | Federal Bureau of Investigation for a national criminal history check. The ALE Division and the 7 |
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468 | 471 | | Commission shall keep all information pursuant to this subsection privileged, in accordance with 8 |
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469 | 472 | | applicable State law and federal guidelines, and the information shall be confidential and shall 9 |
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470 | 473 | | not be a public record under Chapter 132 of the General Statutes. The State Bureau of 10 |
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471 | 474 | | Investigation may charge each applicant a fee for conducting the checks of criminal history 11 |
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472 | 475 | | records authorized by this subsection. 12 |
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473 | 476 | | (c) Knowingly making a false statement in an application for a permit shall be grounds 13 |
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474 | 477 | | for denying, suspending, revoking, or taking other action against the permit as provided in 14 |
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475 | 478 | | G.S. 18D-103 and shall also be unlawful. 15 |
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476 | 479 | | (d) An application for a permit shall be accompanied by payment of two thousand dollars 16 |
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477 | 480 | | ($2,000) for each applicant's location or each delivery seller applicant's internet website offering 17 |
---|
478 | 481 | | delivery in this State. However, a single entity with more than 25 locations, internet websites 18 |
---|
479 | 482 | | offering delivery in this State, or a combination of the two shall not pay more than fifty thousand 19 |
---|
480 | 483 | | dollars ($50,000) and shall submit a list of all locations and all internet websites offering delivery 20 |
---|
481 | 484 | | in this State to the Commission. 21 |
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482 | 485 | | (e) The fee required by subsection (d) of this section shall not be refunded. 22 |
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483 | 486 | | (f) All fees collected by the Commission under this Chapter shall be remitted to the State 23 |
---|
484 | 487 | | Treasurer for the General Fund. 24 |
---|
485 | 488 | | "§ 18D-303. Duration of permit; renewal and transfer. 25 |
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486 | 489 | | (a) Once issued, permits shall be valid for up to one year, from May 1 to April 30. 26 |
---|
487 | 490 | | (b) Application for renewal of a permit shall be on a form provided by the Commission. 27 |
---|
488 | 491 | | An application for renewal shall be accompanied by a renewal fee. The renewal fee shall be the 28 |
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489 | 492 | | same amount as the application fee set in G.S. 18D-302. A renewal fee shall not be refundable. 29 |
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490 | 493 | | (c) Notwithstanding subsection (a) of this section, the Commission shall not revoke a 30 |
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491 | 494 | | permit for failure to pay a renewal application fee until June 1 of each year. No later than five 31 |
---|
492 | 495 | | business days after April 30 of each year, the Commission shall notify permittees who have not 32 |
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493 | 496 | | paid any required renewal application fees as of April 30. The Commission shall charge a late 33 |
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494 | 497 | | fee of twenty-five percent (25%) of the renewal application fee for a permit for which the renewal 34 |
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495 | 498 | | application fee is submitted after April 30. 35 |
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496 | 499 | | (d) Change in Ownership. – 36 |
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497 | 500 | | (1) Except as provided in subdivisions (2) and (2a) of this subsection, all permits 37 |
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498 | 501 | | for an establishment shall automatically expire and shall be surrendered to the 38 |
---|
499 | 502 | | Commission in any of the following circumstances: 39 |
---|
500 | 503 | | a. Ownership of the establishment changes. 40 |
---|
501 | 504 | | b. There is a change in the membership of the firm, association, or 41 |
---|
502 | 505 | | partnership owning the establishment, involving the acquisition of a 42 |
---|
503 | 506 | | twenty-five percent (25%) or greater share in the firm, association, or 43 |
---|
504 | 507 | | partnership by someone who did not previously own a twenty-five 44 |
---|
505 | 508 | | percent (25%) or greater share. 45 |
---|
506 | 509 | | c. Twenty-five percent (25%) or more of the stock of the corporate 46 |
---|
507 | 510 | | permittee owning the establishment is acquired by someone who did 47 |
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508 | 511 | | not previously own twenty-five percent (25%) or more of the stock. 48 |
---|
509 | 512 | | (2) Notwithstanding subsection (e) of this section, any person who through 49 |
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510 | 513 | | contract, lease, management agreement, or change of ownership or transfer of 50 |
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511 | 514 | | business as provided in subdivision (1) of this subsection becomes lawfully 51 General Assembly Of North Carolina Session 2025 |
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513 | 516 | | entitled to use and control of the premises of an establishment that holds 1 |
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514 | 517 | | permits immediately prior to such change of ownership may continue to 2 |
---|
515 | 518 | | operate the establishment, as successor to the prior permittee, to the same 3 |
---|
516 | 519 | | extent as the predecessor permittee until the person receives a temporary or 4 |
---|
517 | 520 | | new permit, subject to the following limitations: 5 |
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518 | 521 | | a. The person shall provide written or electronic notice to the 6 |
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519 | 522 | | Commission of the name of the non-permitted person, the name and 7 |
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520 | 523 | | address of the permitted establishment, and the date of the change in 8 |
---|
521 | 524 | | ownership. The person may not operate the establishment as provided 9 |
---|
522 | 525 | | in this subdivision until the person has provided notice to the 10 |
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523 | 526 | | Commission. The Commission shall not require any additional 11 |
---|
524 | 527 | | documentation besides the written or electronic notice to satisfy this 12 |
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525 | 528 | | requirement. The prior permittee shall not be liable for any acts or 13 |
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526 | 529 | | omissions of the non-permitted person operating the establishment. 14 |
---|
527 | 530 | | Any violations of the hemp-derived consumable product retail sales 15 |
---|
528 | 531 | | law committed by the person or any actions taken by the Commission 16 |
---|
529 | 532 | | to revoke or suspend the permit based on the acts or omissions of the 17 |
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530 | 533 | | person operating the establishment shall not preclude the prior 18 |
---|
531 | 534 | | permittee from receiving a permit for a different establishment. 19 |
---|
532 | 535 | | b. The person shall submit a new permit application to the Commission 20 |
---|
533 | 536 | | within 60 days after the change of ownership. If the person does not 21 |
---|
534 | 537 | | apply for a new permit within 60 days, all permits for the establishment 22 |
---|
535 | 538 | | shall automatically expire and shall be surrendered to the Commission. 23 |
---|
536 | 539 | | c. The 60-day period to file a new permit application shall only be 24 |
---|
537 | 540 | | allowed once per 24 months for each establishment that holds a permit, 25 |
---|
538 | 541 | | unless the establishment requests and the Commission grants a waiver 26 |
---|
539 | 542 | | of the 24-month requirement. The Commission shall grant a waiver of 27 |
---|
540 | 543 | | the 24-month requirement if it determines that the public health, 28 |
---|
541 | 544 | | safety, and welfare would not be harmed by granting the waiver. 29 |
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542 | 545 | | d. This subdivision shall apply only to establishments that hold permits 30 |
---|
543 | 546 | | that are in good standing and that have not been found responsible by 31 |
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544 | 547 | | the Commission or a court of competent jurisdiction of a gambling, 32 |
---|
545 | 548 | | assault, disorderly conduct, prostitution, or controlled substances 33 |
---|
546 | 549 | | violation within 12 months prior to the date the non-permitted person 34 |
---|
547 | 550 | | becomes entitled to use and control of the establishment. 35 |
---|
548 | 551 | | e. The person shall be authorized to operate the establishment as 36 |
---|
549 | 552 | | successor to the prior permittee to the same extent as the predecessor 37 |
---|
550 | 553 | | permittee until the Commission either issues or denies the permit 38 |
---|
551 | 554 | | application submitted pursuant to sub-subdivision b. of this 39 |
---|
552 | 555 | | subdivision. 40 |
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553 | 556 | | (2a) The transfer by a person of any ownership interest to a revocable or 41 |
---|
554 | 557 | | irrevocable trust established by the person shall not constitute a change in 42 |
---|
555 | 558 | | ownership for purposes of subdivision (1) of this subsection if the person 43 |
---|
556 | 559 | | transferring the ownership interest to the trust continues to operate the 44 |
---|
557 | 560 | | establishment. If the person who transferred the ownership interest ceases to 45 |
---|
558 | 561 | | operate the establishment following the transfer of the ownership interest to 46 |
---|
559 | 562 | | the trust, this shall constitute a change in ownership for purposes of 47 |
---|
560 | 563 | | subdivision (1) of this subsection. The trustee shall notify the Commission 48 |
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561 | 564 | | within 30 days if the person who transferred the ownership interest ceases to 49 |
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562 | 565 | | operate the establishment. 50 General Assembly Of North Carolina Session 2025 |
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564 | 567 | | (e) A corporation holding a permit for an establishment for which the manager is required 1 |
---|
565 | 568 | | to qualify as an applicant under G.S. 18D-300(c) shall, within 30 days after employing a new 2 |
---|
566 | 569 | | manager, submit to the Commission an application for substitution of a manager. The application 3 |
---|
567 | 570 | | shall be signed by the new manager, shall be on a form provided by the Commission, and shall 4 |
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568 | 571 | | be accompanied by a fee of ten dollars ($10.00). The fee shall not be refundable. 5 |
---|
569 | 572 | | (f) A permit issued pursuant to this Chapter may not be transferred from one person to 6 |
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570 | 573 | | another or from one location to another. 7 |
---|
571 | 574 | | (g) The Commission may issue duplicate permits for an establishment when the existing 8 |
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572 | 575 | | valid permits have been lost or damaged. The request for duplicate permits shall be on a form 9 |
---|
573 | 576 | | provided by the Commission, certified by the permittee and the ALE Division, and accompanied 10 |
---|
574 | 577 | | by a fee of ten dollars ($10.00). 11 |
---|
575 | 578 | | (h) The Commission may issue new permits to a permittee upon application and payment 12 |
---|
576 | 579 | | of a fee of ten dollars ($10.00) for each location when the permittee's name or name of the 13 |
---|
577 | 580 | | business is changed. 14 |
---|
578 | 581 | | "§ 18D-304. Miscellaneous provisions concerning permits. 15 |
---|
579 | 582 | | (a) The following apply to a permit issued pursuant to this Chapter: 16 |
---|
580 | 583 | | (1) A retail seller permit shall authorize the sale of hemp-derived consumable 17 |
---|
581 | 584 | | products only in the physical presence of the consumer on the fixed premises 18 |
---|
582 | 585 | | of the establishment located in the State and named in the permit. A retail 19 |
---|
583 | 586 | | seller permit shall be issued to the owner of the business conducted on the 20 |
---|
584 | 587 | | premises or to the management company employed to independently manage 21 |
---|
585 | 588 | | and operate the business. The Commission may determine if a management 22 |
---|
586 | 589 | | agreement delegates sufficient managerial control and independence to a 23 |
---|
587 | 590 | | manager or management company to require a retail seller permit to be issued 24 |
---|
588 | 591 | | to the manager. 25 |
---|
589 | 592 | | (2) A delivery seller permit shall authorize a delivery sale only, originating either 26 |
---|
590 | 593 | | inside or outside of the State. A delivery seller permit shall be issued to the 27 |
---|
591 | 594 | | owner of the business or to the management company employed to 28 |
---|
592 | 595 | | independently manage and operate the business. The Commission may 29 |
---|
593 | 596 | | determine if a management agreement delegates sufficient managerial control 30 |
---|
594 | 597 | | and independence to a manager or management company to require a delivery 31 |
---|
595 | 598 | | seller permit to be issued to the manager. 32 |
---|
596 | 599 | | (b) Each retail seller permit that is held by an establishment shall be posted in a prominent 33 |
---|
597 | 600 | | place on the premises. Each delivery seller shall post its delivery seller permit number on any 34 |
---|
598 | 601 | | advertisement, the internet, or other online service or application a customer may use to submit 35 |
---|
599 | 602 | | an order and on all invoices or receipts for hemp-derived consumable products delivered by mail 36 |
---|
600 | 603 | | or a delivery service. 37 |
---|
601 | 604 | | (c) No permit shall be issued to a business on the campus or property of a public school, 38 |
---|
602 | 605 | | college, or university. 39 |
---|
603 | 606 | | (d) A permit shall automatically expire and shall be surrendered to the Commission if the 40 |
---|
604 | 607 | | person to whom it is issued does not commence the activity authorized by the permit within six 41 |
---|
605 | 608 | | months of the date the permit is effective. Before the expiration of the six-month period, the 42 |
---|
606 | 609 | | Commission may waive this provision in individual cases for good cause. 43 |
---|
607 | 610 | | (e) Upon issuing a permit, the Commission shall send notice of the issuance, with the 44 |
---|
608 | 611 | | name and address of the permittee and the establishment, to all of the following: 45 |
---|
609 | 612 | | (1) The Department of Revenue. 46 |
---|
610 | 613 | | (2) The Department of Health and Human Services, Division of Mental Health, 47 |
---|
611 | 614 | | Developmental Disabilities, and Substance Use Services. 48 |
---|
612 | 615 | | (3) The ALE Division. 49 |
---|
613 | 616 | | "§ 18D-305. Temporary permits. 50 General Assembly Of North Carolina Session 2025 |
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615 | 618 | | When an application has been received in proper form, with the required application fee, the 1 |
---|
616 | 619 | | Commission may issue a temporary permit for any of the activities for which permits are 2 |
---|
617 | 620 | | authorized under this Chapter. A temporary permit may be revoked summarily by the 3 |
---|
618 | 621 | | Commission without complying with the provisions of Chapter 150B of the General Statutes. 4 |
---|
619 | 622 | | Revocation of a temporary permit or withdrawal by the Commission of a pending application by 5 |
---|
620 | 623 | | a permittee possessing a temporary permit shall be effective upon service of the notice of 6 |
---|
621 | 624 | | revocation or withdrawal upon the permittee at either the permittee's residence or the address 7 |
---|
622 | 625 | | given for the business in the permit application or upon the expiration of five business days after 8 |
---|
623 | 626 | | the notice of the revocation or withdrawal has been mailed to the permittee at either the 9 |
---|
624 | 627 | | permittee's residence or the address given for the business in the permit application. No further 10 |
---|
625 | 628 | | notice shall be required. 11 |
---|
626 | 629 | | "§ 18D-306. Allow electronic submission of payments and forms. 12 |
---|
627 | 630 | | (a) The Commission shall make all forms required by the Commission to apply for and 13 |
---|
628 | 631 | | receive a permit available on the Commission's website, and the Commission shall, to the extent 14 |
---|
629 | 632 | | practicable, allow for the electronic submission of these forms. Any form required by the 15 |
---|
630 | 633 | | Commission to apply for and receive a permit that requires a signature may be submitted with an 16 |
---|
631 | 634 | | electronic signature in accordance with Article 40 of Chapter 66 of the General Statutes and 17 |
---|
632 | 635 | | notarized in accordance with Chapter 10B of the General Statutes. 18 |
---|
633 | 636 | | (b) The Commission shall accept electronic payments for any fee required under this 19 |
---|
634 | 637 | | Chapter to receive a permit. For purposes of this subsection, the term "electronic payment" means 20 |
---|
635 | 638 | | payment by charge card, credit card, debit card, or by electronic funds transfer as defined in 21 |
---|
636 | 639 | | G.S. 105-228.90. 22 |
---|
637 | 640 | | (c) The Commission may charge a fee to be used to cover costs incurred by the 23 |
---|
638 | 641 | | Commission in processing forms electronically and accepting payments electronically. The fee 24 |
---|
639 | 642 | | authorized under this subsection may not exceed five dollars ($5.00). 25 |
---|
640 | 643 | | "§ 18D-307. Permits issued pursuant to this Chapter and ABC permits. 26 |
---|
641 | 644 | | (a) Applications for permits issued pursuant to this Chapter may be filed simultaneously 27 |
---|
642 | 645 | | or in conjunction with applications for ABC permits under Chapter 18B of the General Statutes 28 |
---|
643 | 646 | | and may be combined by the Commission in a single application. 29 |
---|
644 | 647 | | (b) The Commission may use, rely upon, or incorporate by reference any information an 30 |
---|
645 | 648 | | applicant for a permit under this Chapter has submitted in conjunction with an ABC permit issued 31 |
---|
646 | 649 | | pursuant to Chapter 18B of the General Statutes. 32 |
---|
647 | 650 | | "Article 4. 33 |
---|
648 | 651 | | "Retail Activities. 34 |
---|
649 | 652 | | "§ 18D-400. Responsibilities of permittee. 35 |
---|
650 | 653 | | (a) For purposes of this Chapter, a retail seller permittee shall be responsible for the entire 36 |
---|
651 | 654 | | premises for which the permit is issued. The permittee shall keep the premises clean, well-lighted, 37 |
---|
652 | 655 | | and orderly. 38 |
---|
653 | 656 | | (b) For purposes of this Chapter, a permittee shall be responsible for the actions of all 39 |
---|
654 | 657 | | employees of the business for which the permit is issued. 40 |
---|
655 | 658 | | (c) A permittee shall not knowingly employ in the sale or distribution of hemp-derived 41 |
---|
656 | 659 | | consumable products any person who has been a past permit holder under this Chapter whose 42 |
---|
657 | 660 | | permit had been revoked within the last 18 months and who had been the permit holder at the 43 |
---|
658 | 661 | | location where the person would be employed. 44 |
---|
659 | 662 | | (d) An employee or agent of a retail seller shall demand proof of age from a prospective 45 |
---|
660 | 663 | | purchaser of hemp-derived consumable products before the hemp-derived consumable product 46 |
---|
661 | 664 | | is released to the purchaser, if the person has reasonable grounds to believe that the prospective 47 |
---|
662 | 665 | | purchaser is under 30 years of age. 48 |
---|
663 | 666 | | (e) A delivery seller shall do both of the following: 49 |
---|
664 | 667 | | (1) Perform an age verification through an independent, third-party age 50 |
---|
665 | 668 | | verification service that compares information available from public records 51 General Assembly Of North Carolina Session 2025 |
---|
667 | 670 | | to the personal information entered by the individual during the ordering 1 |
---|
668 | 671 | | process to establish that the individual ordering the hemp-derived consumable 2 |
---|
669 | 672 | | products is 21 years of age or older. 3 |
---|
670 | 673 | | (2) Use a method of mailing, shipping, or delivery that requires the signature of a 4 |
---|
671 | 674 | | person at least 21 years of age before the hemp-derived consumable product 5 |
---|
672 | 675 | | is released to the purchaser. 6 |
---|
673 | 676 | | (f) Retail sellers of hemp-derived consumable products shall train their employees or 7 |
---|
674 | 677 | | agents in the requirements of this Chapter, to include all of the following: 8 |
---|
675 | 678 | | (1) Which products the retail dealer sells meet the definition of a hemp-derived 9 |
---|
676 | 679 | | consumable product. 10 |
---|
677 | 680 | | (2) The age requirements for purchasing hemp-derived consumable products. 11 |
---|
678 | 681 | | (3) Acceptable forms of identification. 12 |
---|
679 | 682 | | (4) Methods to detect fake, altered, and imposter forms of identification. 13 |
---|
680 | 683 | | (5) Penalties for sales to underage persons. 14 |
---|
681 | 684 | | (6) Methods of identifying potentially underage persons and to prevent underage 15 |
---|
682 | 685 | | sales. 16 |
---|
683 | 686 | | (g) Retail dealers shall prominently display to the ultimate consumer the following 17 |
---|
684 | 687 | | statement: "N.C. LAW STRICTLY PROHIBITS THE PURCHASE OF HEMP-DERIVED 18 |
---|
685 | 688 | | CONSUMABLE PRODUCTS BY PERSONS UNDER THE AGE OF 21. PROOF OF AGE 19 |
---|
686 | 689 | | REQUIRED." as follows: 20 |
---|
687 | 690 | | (1) Retail sellers shall prominently display this required statement near the point 21 |
---|
688 | 691 | | of sale on a sign with letters at least 5/8 of an inch high. 22 |
---|
689 | 692 | | (2) Delivery sellers shall prominently display this required statement on any 23 |
---|
690 | 693 | | advertisement, the internet, or other online service or application a customer 24 |
---|
691 | 694 | | may use to submit an order and on all invoices or receipts for hemp-derived 25 |
---|
692 | 695 | | consumable products delivered by mail or a delivery service. 26 |
---|
693 | 696 | | "§ 18D-401. Conduct on licensed premises. 27 |
---|
694 | 697 | | (a) It shall be unlawful for a permittee or the permittee's agent or employee to knowingly 28 |
---|
695 | 698 | | allow any of the following kinds of conduct to occur on the licensed premises: 29 |
---|
696 | 699 | | (1) Any violation of this Chapter. 30 |
---|
697 | 700 | | (2) Any fighting or other disorderly conduct that can be prevented without undue 31 |
---|
698 | 701 | | danger to the permittee, the permittee's employees, or patrons. 32 |
---|
699 | 702 | | (3) Any violation of the controlled substances, gambling, or prostitution statutes, 33 |
---|
700 | 703 | | or any other unlawful acts. 34 |
---|
701 | 704 | | (b) It shall be unlawful for a permittee to fail to superintend in person or through a 35 |
---|
702 | 705 | | manager the business for which a permit is issued. 36 |
---|
703 | 706 | | "§ 18D-402. Miscellaneous hemp-derived consumable product sales provisions. 37 |
---|
704 | 707 | | (a) A permittee shall not sell hemp-derived consumable products through displays 38 |
---|
705 | 708 | | accessible to the public without the assistance of a permittee's employee or agent other than in 39 |
---|
706 | 709 | | an establishment open only to persons 21 years of age and older. 40 |
---|
707 | 710 | | (b) It shall be unlawful for any person to do any of the following: 41 |
---|
708 | 711 | | (1) Produce or possess any false or facsimile permit, or for a permittee to display 42 |
---|
709 | 712 | | any false or facsimile permit on the person's licensed premises. 43 |
---|
710 | 713 | | (2) Refuse to surrender any permit to the Commission upon lawful demand of the 44 |
---|
711 | 714 | | Commission or its agents. 45 |
---|
712 | 715 | | (3) Offer hemp-derived consumable products for sale in a vending machine. 46 |
---|
713 | 716 | | (4) Distribute hemp-derived consumable products not approved or authorized by 47 |
---|
714 | 717 | | the federal Food and Drug Administration. 48 |
---|
715 | 718 | | (5) Sell hemp-derived consumable products other than in the manufacturer's or 49 |
---|
716 | 719 | | importer's original, sealed, and unopened packaging that complies with all 50 |
---|
717 | 720 | | federal labeling requirements. 51 General Assembly Of North Carolina Session 2025 |
---|
719 | 722 | | (6) Distribute or cause to be distributed samples of hemp-derived consumable 1 |
---|
720 | 723 | | products. 2 |
---|
721 | 724 | | "Article 5. 3 |
---|
722 | 725 | | "Hemp-Derived Consumable Product Sales to Underage Persons. 4 |
---|
723 | 726 | | "§ 18D-500. Sales to persons under the age of 21. 5 |
---|
724 | 727 | | If any person shall sell, aid, assist, or abet any other person in selling hemp-derived 6 |
---|
725 | 728 | | consumable products to any person under the age of 21 years, or if any person shall purchase 7 |
---|
726 | 729 | | hemp-derived consumable products on behalf of a person under the age of 21 years, the person 8 |
---|
727 | 730 | | shall be guilty of a Class 2 misdemeanor; provided, however, that it shall not be unlawful to sell 9 |
---|
728 | 731 | | hemp-derived consumable products to an employee or agent of a permittee under the age of 21 10 |
---|
729 | 732 | | years when possession of the hemp-derived consumable product is required pursuant to a permit 11 |
---|
730 | 733 | | in the performance of that person's duties of employment or contract. 12 |
---|
731 | 734 | | "§ 18D-501. Purchase by persons under the age of 21. 13 |
---|
732 | 735 | | (a) Except as provided in subsection (b) of this section, if any person under the age of 21 14 |
---|
733 | 736 | | years purchases or accepts receipt, or attempts to purchase or accept receipt, of hemp-derived 15 |
---|
734 | 737 | | consumable products, the person shall commit an infraction. The person shall not be required to 16 |
---|
735 | 738 | | pay any fine or court costs. 17 |
---|
736 | 739 | | (b) If a person under the age of 21 presents or offers to any person any purported proof 18 |
---|
737 | 740 | | of age which is false, fraudulent, or not actually his or her own, for the purpose of purchasing or 19 |
---|
738 | 741 | | receiving any hemp-derived consumable product, the person shall be guilty of a Class 2 20 |
---|
739 | 742 | | misdemeanor. 21 |
---|
740 | 743 | | (c) It shall not be unlawful for an employee or agent of a permittee under the age of 21 22 |
---|
741 | 744 | | years to accept receipt of, sell, transport, possess, or dispense hemp-derived consumable products 23 |
---|
742 | 745 | | when required pursuant to a permit in the performance of that person's duties of employment or 24 |
---|
743 | 746 | | contract, if the employment of the person for that purpose is lawful under applicable youth 25 |
---|
744 | 747 | | employment statutes and Commission rules. 26 |
---|
745 | 748 | | "§ 18D-502. Aiding or abetting a person under the age of 21 to purchase or receive 27 |
---|
746 | 749 | | hemp-derived consumable products. 28 |
---|
747 | 750 | | (a) If any person less than 21 years of age shall send a person less than 21 years of age to 29 |
---|
748 | 751 | | purchase, acquire, receive, or attempt to purchase, acquire, or receive hemp-derived consumable 30 |
---|
749 | 752 | | products or if any person less than 21 years of age shall aid or abet a person who is less than 21 31 |
---|
750 | 753 | | years of age in purchasing, acquiring, or receiving or attempting to purchase, acquire, or receive 32 |
---|
751 | 754 | | hemp-derived consumable products, the person shall commit an infraction. The person shall not 33 |
---|
752 | 755 | | be required to pay any fine or court costs. 34 |
---|
753 | 756 | | (b) If any person 21 years of age or older shall send a person less than 21 years of age to 35 |
---|
754 | 757 | | purchase, acquire, receive, or attempt to purchase, acquire, or receive hemp-derived consumable 36 |
---|
755 | 758 | | products, or if any person 21 years of age or older shall aid or abet a person who is less than 21 37 |
---|
756 | 759 | | years of age in purchasing, acquiring, or receiving or attempting to purchase, acquire, or receive 38 |
---|
757 | 760 | | hemp-derived consumable products, the person shall be guilty of a Class 2 misdemeanor. 39 |
---|
758 | 761 | | "§ 18D-503. Exceptions to violations of G.S. 18D-501 and G.S. 18D-502. 40 |
---|
759 | 762 | | Notwithstanding G.S. 18D-501 and G.S. 18D-502, a person under the age of 21 may lawfully 41 |
---|
760 | 763 | | be enlisted by any of the following: 42 |
---|
761 | 764 | | (1) Law enforcement, including the Division of Alcohol Law Enforcement, to test 43 |
---|
762 | 765 | | compliance if the testing is under the direct supervision of that law 44 |
---|
763 | 766 | | enforcement department and written parental consent is provided. 45 |
---|
764 | 767 | | (2) The Department of Health and Human Services, pursuant to a written plan 46 |
---|
765 | 768 | | prepared by the Secretary of Health and Human Services, to use persons under 47 |
---|
766 | 769 | | 21 years of age in annual, random, unannounced inspections, provided that 48 |
---|
767 | 770 | | prior written parental consent is given for the involvement of these persons 49 |
---|
768 | 771 | | and that the inspections are conducted for the sole purpose of preparing a 50 |
---|
769 | 772 | | scientifically and methodologically valid statistical study of the extent of 51 General Assembly Of North Carolina Session 2025 |
---|
771 | 774 | | success the State has achieved in reducing the availability of hemp-derived 1 |
---|
772 | 775 | | consumable products to persons under the age of 21, and preparing any report 2 |
---|
773 | 776 | | to the extent required by section 1926 of the federal Public Health Service Act 3 |
---|
774 | 777 | | (42 U.S.C. § 300x-26). 4 |
---|
775 | 778 | | (3) A research program affiliated with an accredited community college, college, 5 |
---|
776 | 779 | | or university located in this State to test compliance as part of a scientific 6 |
---|
777 | 780 | | research study to further efforts in underage hemp-derived consumable 7 |
---|
778 | 781 | | product use prevention, provided that prior written parental consent is given 8 |
---|
779 | 782 | | for persons under 18 years of age. The scientific research study must be 9 |
---|
780 | 783 | | approved by an institutional review board with jurisdiction to review the study 10 |
---|
781 | 784 | | and must comply with 45 C.F.R. § 46. The ALE Division and the Department 11 |
---|
782 | 785 | | of Health and Human Services shall be provided a copy of the study protocol 12 |
---|
783 | 786 | | 30 calendar days before it is presented to the institutional review board and 13 |
---|
784 | 787 | | given an opportunity to provide comments regarding the proposed research 14 |
---|
785 | 788 | | protocol to the research investigators. The research investigators shall provide 15 |
---|
786 | 789 | | any comments received from the ALE Division and the Department of Health 16 |
---|
787 | 790 | | and Human Services to the institutional review board for review prior to the 17 |
---|
788 | 791 | | rendering of a decision on the scientific research study application. A person 18 |
---|
789 | 792 | | shall not be guilty of a violation of this Article when the act in question arises 19 |
---|
790 | 793 | | as part of a test of compliance in a scientific research study pursuant to this 20 |
---|
791 | 794 | | subdivision. A permittee shall not be in violation of this Article or subject to 21 |
---|
792 | 795 | | any administrative penalty when the act in question arises as part of a test of 22 |
---|
793 | 796 | | compliance in a scientific research study pursuant to this subdivision. 23 |
---|
794 | 797 | | "§ 18D-504. Defense to underage sale. 24 |
---|
795 | 798 | | It shall be a defense to a violation of G.S. 18D-500 if the seller does any of the following: 25 |
---|
796 | 799 | | (1) Shows that the purchaser produced a drivers license, a special identification 26 |
---|
797 | 800 | | card issued under G.S. 20-37.7 or issued by the state agency of any other state 27 |
---|
798 | 801 | | authorized to issue similar official state special identification cards for that 28 |
---|
799 | 802 | | state, a military identification card, or a passport, showing the person's age to 29 |
---|
800 | 803 | | be at least the required age for purchase and bearing a physical description of 30 |
---|
801 | 804 | | the person named on the card reasonably describing the purchaser. 31 |
---|
802 | 805 | | (2) Produces evidence of other facts that reasonably indicated at the time of sale 32 |
---|
803 | 806 | | that the purchaser was at least the required age. 33 |
---|
804 | 807 | | (3) Shows that at the time of purchase, the purchaser utilized a biometric 34 |
---|
805 | 808 | | identification system that demonstrated (i) the purchaser's age to be at least 35 |
---|
806 | 809 | | the required age for the purchase and (ii) the purchaser had previously 36 |
---|
807 | 810 | | registered with the seller or seller's agent a drivers license, a special 37 |
---|
808 | 811 | | identification card issued under G.S. 20-37.7 or issued by the state agency of 38 |
---|
809 | 812 | | any other state authorized to issue similar official state special identification 39 |
---|
810 | 813 | | cards for that state, a military identification card, or a passport showing the 40 |
---|
811 | 814 | | purchaser's date of birth and bearing a physical description of the person 41 |
---|
812 | 815 | | named on the document. 42 |
---|
813 | 816 | | "§ 18D-505. Deferred prosecution or conditional discharge. 43 |
---|
814 | 817 | | Notwithstanding G.S. 15A-1341(a1) or G.S. 15A-1341(a4), any person charged with a 44 |
---|
815 | 818 | | misdemeanor under this Article shall be qualified for deferred prosecution or a conditional 45 |
---|
816 | 819 | | discharge pursuant to Article 82 of Chapter 15A of the General Statutes provided the defendant 46 |
---|
817 | 820 | | has not previously been placed on probation for a violation of this Article and so states under 47 |
---|
818 | 821 | | oath. 48 |
---|
819 | 822 | | "Article 6. 49 |
---|
820 | 823 | | "Miscellaneous. 50 |
---|
821 | 824 | | "§ 18D-600. Restitution. 51 General Assembly Of North Carolina Session 2025 |
---|
823 | 826 | | When a person is convicted of a violation of the hemp-derived consumable product retail 1 |
---|
824 | 827 | | sales laws, the court may order the person to make restitution to any law enforcement agency for 2 |
---|
825 | 828 | | reasonable expenditures made in purchasing hemp-derived consumable products from the person 3 |
---|
826 | 829 | | or the person's agent as part of an investigation leading to the person's conviction. 4 |
---|
827 | 830 | | "§ 18D-601. Criminal penalty. 5 |
---|
828 | 831 | | Unless a different punishment is otherwise expressly stated, any person who violates any 6 |
---|
829 | 832 | | provisions of this Chapter shall be guilty of a Class 1 misdemeanor. In addition, the court may 7 |
---|
830 | 833 | | impose the provisions of G.S. 18D-201, 18D-202, and 18D-600." 8 |
---|
831 | 834 | | SECTION 2. G.S. 18B-500(b) reads as rewritten: 9 |
---|
832 | 835 | | "(b) Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an 10 |
---|
833 | 836 | | alcohol law-enforcement agent shall have authority to arrest and take other investigatory and 11 |
---|
834 | 837 | | enforcement actions for any criminal offense: 12 |
---|
835 | 838 | | (1) Occurring, encountered, or otherwise discovered on the premises of, or 13 |
---|
836 | 839 | | elsewhere when the conduct relates to, a location under application for or 14 |
---|
837 | 840 | | holding a permit issued by the North Carolina Alcoholic Beverage Control 15 |
---|
838 | 841 | | Commission or the North Carolina Education Lottery Commission. 16 |
---|
839 | 842 | | (1a) Occurring, encountered, or otherwise discovered on the premises of, or 17 |
---|
840 | 843 | | elsewhere when the conduct relates to, a location holding a permit issued 18 |
---|
841 | 844 | | pursuant to Chapter 18D of the General Statutes. 19 |
---|
842 | 845 | | (2) Encountered or otherwise discovered while investigating or enforcing matters 20 |
---|
843 | 846 | | for the North Carolina Alcoholic Beverage Control Commission or the North 21 |
---|
844 | 847 | | Carolina Education Lottery Commission or encountered or otherwise 22 |
---|
845 | 848 | | discovered while investigating or enforcing the provisions of this Chapter, 23 |
---|
846 | 849 | | Chapter 18C of the General Statutes, Chapter 18D of the General Statutes, 24 |
---|
847 | 850 | | Article 5 of Chapter 90 of the General Statutes, G.S. 14-313, or Parts 1 and 2 25 |
---|
848 | 851 | | of Article 37 of Chapter 14 of the General Statutes. 26 |
---|
849 | 852 | | (3) Encountered or otherwise discovered while carrying out any duty or function 27 |
---|
850 | 853 | | assigned to the Division by law. 28 |
---|
851 | 854 | | (4) Occurring in an agent's presence. 29 |
---|
852 | 855 | | (5) When assisting another law enforcement agency." 30 |
---|
853 | 856 | | SECTION 3. G.S. 15A-145 reads as rewritten: 31 |
---|
854 | 857 | | "§ 15A-145. Expunction of records for first offenders under the age of 18 at the time of 32 |
---|
855 | 858 | | conviction of misdemeanor; expunction of certain other misdemeanors. 33 |
---|
856 | 859 | | (a) Whenever any person who has not previously been convicted of any felony, or 34 |
---|
857 | 860 | | misdemeanor other than a traffic violation, under the laws of the United States, the laws of this 35 |
---|
858 | 861 | | State or any other state, (i) pleads guilty to or is guilty of a misdemeanor other than a traffic 36 |
---|
859 | 862 | | violation, and the offense was committed before the person attained the age of 18 years, or (ii) 37 |
---|
860 | 863 | | pleads guilty to or is guilty of a misdemeanor possession of alcohol pursuant to 38 |
---|
861 | 864 | | G.S. 18B-302(b)(1), or the offense of the sale of a hemp-derived consumable product to a person 39 |
---|
862 | 865 | | under the age of 21 years pursuant to G.S. 18D-500, and the offense was committed before the 40 |
---|
863 | 866 | | person attained the age of 21 years, he the person may file a petition in the court of the county 41 |
---|
864 | 867 | | where he the person was convicted for expunction of the misdemeanor from his the person's 42 |
---|
865 | 868 | | criminal record. The petition cannot be filed earlier than: (i) two years after the date of the 43 |
---|
866 | 869 | | conviction, or (ii) the completion of any period of probation, whichever occurs later, and the 44 |
---|
867 | 870 | | petition shall contain, but not be limited to, the following: 45 |
---|
868 | 871 | | (1) An affidavit by the petitioner that he the petitioner has been of good behavior 46 |
---|
869 | 872 | | for the two-year period since the date of conviction of the misdemeanor in 47 |
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870 | 873 | | question and has not been convicted of any felony, or misdemeanor other than 48 |
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871 | 874 | | a traffic violation, under the laws of the United States or the laws of this State 49 |
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872 | 875 | | or any other state. 50 General Assembly Of North Carolina Session 2025 |
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874 | 877 | | (2) Verified affidavits of two persons who are not related to the petitioner or to 1 |
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875 | 878 | | each other by blood or marriage, that they know the character and reputation 2 |
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876 | 879 | | of the petitioner in the community in which he the petitioner lives and that his 3 |
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877 | 880 | | the petitioner's character and reputation are good. 4 |
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878 | 881 | | (3) A statement that the petition is a motion in the cause in the case wherein the 5 |
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879 | 882 | | petitioner was convicted. 6 |
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880 | 883 | | (4) Repealed by Session Laws 2010-174, s. 2, effective October 1, 2010, and 7 |
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881 | 884 | | applicable to petitions for expunctions filed on or after that date. 8 |
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882 | 885 | | (4a) An application on a form approved by the Administrative Office of the Courts 9 |
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883 | 886 | | requesting and authorizing a name-based State and national criminal record 10 |
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884 | 887 | | check by the State Bureau of Investigation using any information required by 11 |
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885 | 888 | | the Administrative Office of the Courts to identify the individual and a search 12 |
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886 | 889 | | of the confidential record of expunctions maintained by the Administrative 13 |
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887 | 890 | | Office of the Courts. The application shall be filed with the clerk of superior 14 |
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888 | 891 | | court. The clerk of superior court shall forward the application to the State 15 |
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889 | 892 | | Bureau of Investigation and to the Administrative Office of the Courts, which 16 |
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890 | 893 | | shall conduct the searches and report their findings to the court. 17 |
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891 | 894 | | (5) An affidavit by the petitioner that no restitution orders or civil judgments 18 |
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892 | 895 | | representing amounts ordered for restitution entered against him the petitioner 19 |
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893 | 896 | | are outstanding. 20 |
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894 | 897 | | The petition shall be served upon the district attorney of the court wherein the case was tried 21 |
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895 | 898 | | resulting in conviction. The district attorney shall have 10 days thereafter in which to file any 22 |
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896 | 899 | | objection thereto and shall be duly notified as to the date of the hearing of the petition. 23 |
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897 | 900 | | The judge to whom the petition is presented is authorized to call upon a probation officer for 24 |
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898 | 901 | | any additional investigation or verification of the petitioner's conduct during the two-year period 25 |
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899 | 902 | | that he the judge deems desirable. 26 |
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900 | 903 | | … 27 |
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901 | 904 | | (b) If the court, after hearing, finds that the petitioner had remained of good behavior and 28 |
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902 | 905 | | been free of conviction of any felony or misdemeanor, other than a traffic violation, for two years 29 |
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903 | 906 | | from the date of conviction of the misdemeanor in question, the petitioner has no outstanding 30 |
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904 | 907 | | restitution orders or civil judgments representing amounts ordered for restitution entered against 31 |
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905 | 908 | | him, and (i) petitioner was not 18 years old at the time of the offense in question, or (ii) petitioner 32 |
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906 | 909 | | was not 21 years old at the time of the offense of possession of alcohol pursuant to 33 |
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907 | 910 | | G.S. 18B-302(b)(1), or the offense of the sale of a hemp-derived consumable product to a person 34 |
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908 | 911 | | under the age of 21 years pursuant to G.S. 18D-500, it shall order that such person the petitioner 35 |
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909 | 912 | | be restored, in the contemplation of the law, to the status he the petitioner occupied before such 36 |
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910 | 913 | | arrest or indictment or information. 37 |
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911 | 914 | | (b1) No person as to whom such order has been entered shall be held thereafter under any 38 |
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912 | 915 | | provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 39 |
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913 | 916 | | his the person's failure to recite or acknowledge such arrest, or indictment, information, or trial, 40 |
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914 | 917 | | or response to any inquiry made of him the person for any purpose. This subsection shall not 41 |
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915 | 918 | | apply to a sentencing hearing when the person has been convicted of a subsequent criminal 42 |
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916 | 919 | | offense. 43 |
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917 | 920 | | …." 44 |
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918 | 921 | | SECTION 4. G.S. 15A-150(a)(6) reads as rewritten: 45 |
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919 | 922 | | "(6) Persons granted a dismissal upon completion of a conditional discharge under 46 |
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920 | 923 | | G.S. 14-50.29, 14-204, 14-277.8, 14-313(f), 15A-1341(a4), 18D-505, 90-96, 47 |
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921 | 924 | | or 90-113.14." 48 |
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922 | 925 | | SECTION 5. G.S. 18B-203(a) reads as rewritten: 49 |
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923 | 926 | | "§ 18B-203. Powers and duties of the Commission. 50 |
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924 | 927 | | (a) Powers. – The Commission shall have authority to:to do all of the following: 51 General Assembly Of North Carolina Session 2025 |
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926 | 929 | | (1) Administer the ABC laws;laws. 1 |
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927 | 930 | | (2) Provide for enforcement of the ABC laws, in conjunction with the ALE 2 |
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928 | 931 | | Division;Division. 3 |
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929 | 932 | | (2a) Provide for the enforcement of the hemp-derived consumable product retail 4 |
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930 | 933 | | sales laws as set forth in Chapter 18D of the General Statutes, in conjunction 5 |
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931 | 934 | | with the ALE Division. 6 |
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932 | 935 | | (3) Set the prices of alcoholic beverages sold in local ABC stores as provided in 7 |
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933 | 936 | | Article 8;8. 8 |
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934 | 937 | | (4) Require reports and audits from local boards as provided in 9 |
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935 | 938 | | G.S. 18B-205;G.S. 18B-205. 10 |
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936 | 939 | | (5) Determine what brands of alcoholic beverages may be sold in this State;State. 11 |
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937 | 940 | | (6) Contract for State ABC warehousing, as provided in 12 |
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938 | 941 | | G.S. 18B-204;G.S. 18B-204. 13 |
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939 | 942 | | (7) Dispose of damaged alcoholic beverages, as provided in 14 |
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940 | 943 | | G.S. 18B-806;G.S. 18B-806. 15 |
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941 | 944 | | (8) Remove for cause any member or employee of a local board;board. 16 |
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942 | 945 | | (9) Supervise or disapprove purchasing by any local board and inspect all records 17 |
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943 | 946 | | of purchases by local boards;boards. 18 |
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944 | 947 | | (10) Approve or disapprove rules adopted by any local board;board. 19 |
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945 | 948 | | (11) Approve or disapprove the opening and location of ABC stores, as provided 20 |
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946 | 949 | | in Article 8;8. 21 |
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947 | 950 | | (12) Issue ABC permits, and impose sanctions against permittees;permittees. 22 |
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948 | 951 | | (12a) Issue permits and impose sanctions against permittees as set forth in Chapter 23 |
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949 | 952 | | 18D of the General Statutes. 24 |
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950 | 953 | | (13) Provide for the testing of alcoholic beverages, as provided in 25 |
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951 | 954 | | G.S. 18B-206;G.S. 18B-206. 26 |
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952 | 955 | | (14) Fix the amount of bailment charges and bailment surcharges to be assessed on 27 |
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953 | 956 | | liquor shipped from a Commission warehouse;warehouse. 28 |
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954 | 957 | | (15) Collect bailment charges and bailment surcharges from local boards;boards. 29 |
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955 | 958 | | (16) Notwithstanding any law to the contrary, enter into contracts for design and 30 |
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956 | 959 | | construction of a warehouse or warehouses and supervise work and materials 31 |
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957 | 960 | | used in the construction, as provided in G.S. 18B-204;G.S. 18B-204. 32 |
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958 | 961 | | … 33 |
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959 | 962 | | (18) Provide for the distribution and posting of warning signs to local ABC boards 34 |
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960 | 963 | | regarding the dangers of alcohol consumption during pregnancy as required 35 |
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961 | 964 | | under G.S. 18B-808;G.S. 18B-808. 36 |
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962 | 965 | | …." 37 |
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963 | 966 | | SECTION 6. Article 9 of Chapter 18B of the General Statutes is amended by adding 38 |
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964 | 967 | | a new section to read: 39 |
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965 | 968 | | "§ 18B-908. ABC permits and hemp-derived consumable product sales permits. 40 |
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966 | 969 | | (a) Applications for permits under this Chapter may be filed simultaneously or in 41 |
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967 | 970 | | conjunction with applications for permits under Chapter 18D of the General Statutes and may be 42 |
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968 | 971 | | combined by the Commission in a single application. 43 |
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969 | 972 | | (b) The Commission may use, rely upon, or incorporate by reference any information an 44 |
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970 | 973 | | applicant for a permit under this Chapter has submitted in conjunction with a permit issued 45 |
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971 | 974 | | pursuant to Chapter 18D of the General Statutes." 46 |
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972 | 975 | | SECTION 7. Effective March 1, 2026, the ABC Commission may issue permits as 47 |
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973 | 976 | | authorized by Section 1 of this act effective for the period of May 1, 2026, through April 30, 48 |
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974 | 977 | | 2027. 49 General Assembly Of North Carolina Session 2025 |
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