Vote Smart's Synopsis:

Vote to adopt a conference report that prohibits the sale of intoxicating hemp-derived products and classifies kratom as a controlled substance in North Carolina.

Highlights:

• Prohibits the sale of hemp-derived consumable products to individuals under 21 (Sec. 1)

• Requires retail dealers to verify age for any purchaser reasonably believed to be under 30 and to require a signature from a person at least 21 years of age for online deliveries (Sec. 1). 

• Requires manufacturers to test each batch of hemp-derived consumable products prior to distribution for delta-9 THC concentration, pesticides, residual solvents, heavy metals and microbial contaminants (Sec. 1)

• Prohibits products exceeding specified limits from being distributed or sold (Sec. 1). 

• Requires hemp-derived consumable products to be sold in child-resistant packaging and labeled with ingredients list, allergen information, cannabinoid content per serving, and warnings regarding pregnancy, impairment, and FDA non-approval (Sec. 1)

• Prohibits advertising using imagery that appeals to individuals under 21 (Sec. 1). 

• Requires manufacturers, distributors, and retail dealers to obtain an annual license from the Alcohol Law Enforcement (ALE) Division before commencing business (Sec. 1)

• Establishes application fees of $25,000 for manufacturers, $5,000 for distributors, and $500 per location for retail dealers (Sec. 1). 

• Authorizes the ALE Division to conduct random, unannounced inspections of licensed premises and to seize noncompliant products for testing (Sec. 1). 

• Establishes civil penalties for retail violations of up to $500 for a first offense, $750 for a second offense, and up to $2,000 with license revocation for a fourth or subsequent offense (Sec. 1)

• Classifies criminal penalties up to a Class G felony for selling prohibited hemp-derived consumable products (Sec. 1). 

• Requires public schools, charter schools, regional schools, and public universities to adopt policies prohibiting the use of hemp-derived consumable products on school property and at school-sponsored events (Sec. 3). 

• Defines “kratom” as a substance containing any quantity of mitragynine or 7-hydroxymitragynine extracted from the Mitragyna speciosa plant, and classifies it as a Schedule VI controlled substance (Sec. 4). 

• Specifies that this act takes effect upon passage unless otherwise provided (Sec. 5).

Full Bill Text