Bill Summary for H 680 (2025-2026)
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View NCGA Bill Details(link is external) | 2025-2026 Session |
AN ACT TO REGULATE THE SALE AND DISTRIBUTION OF HEMP-DERIVED CONSUMABLE PRODUCTS.Intro. by Reeder, Chesser, Setzer.
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Bill summary
Includes whereas clauses.
Enacts GS Chapter 18D, Regulation of Hemp-Derived Consumable Products. Defines 25 terms, including hemp-derived consumable product. Defines the term to mean a hemp product that is a finished good intended for human ingestion or inhalation that contains a delta-9 THC concentration of not more than 0.3% on a dry weight basis, but may contain concentrations of other hemp-derived cannabinoids, as defined, in excess of that amount. Excludes hemp products for topical application or seeds or seed-derived ingredients that the FDA generally recognizes as safe. Authorizes the ABC Commission (Commission) to administer the Chapter's hemp-derived consumable product retail sails laws (retail sales laws), provide for the enforcement of the retail sales laws in conjunction with the Alcohol Law Enforcement Division of the Department of Public Safety (ALE Division), and issue permits and impose sanctions against permittees. Grants the Commission powers incident to the performance of these duties.
Grants Commission employees and ALE agents the authority to investigate the operation of licensed premises at any time it reasonably appears that someone is on the premises. Deems refusal of a permittee or their employee to allow entry for inspection a Class 2 misdemeanor and cause for disciplinary action.
Lists four administrative penalties the Commission can impose for violations of the Chapter's retail sales laws, including suspending the permit for up to three years or fining the permittee, ranging from up to $500 for the first violation and up to $1,000 for a third violation within three years of the first. Allows permittees to pay a compromise penalty of $5,000 in lieu of permit suspension or revocation and details limitations of the Commission. Deems suspension or revocations of a permit grounds for suspension or revocation of any related State or local revenue license, but not an automatic suspension or revocations of any ABC permit held by the same permittee for the same establishment, subject to Commission order.
Grants the Commission rulemaking authority. Details the application of the APA, GS Chapter 150B, to Commission permit decisions and disciplinary actions.
Prohibits the sale of hemp-derived consumable products to a consumer in the State without a permit. Excepts deliveries made by a delivery service on behalf of a permittee.
Details storage and disposition procedures for hemp-derived consumable products seized as evidence of a violation of the Chapter's retail sales laws in both criminal and administrative proceedings. Provides requirements and limitations for disposition by sale, including that sale be by public auction and limited to specified manufacturers, wholesalers, or permittees, and directives for the proceeds of a sale based on the outcome of the criminal proceeding. Creates a right of action for any person who claims any of four listed rights resulting from a seizure, including a claim of ownership of products wrongfully held.
Subjects hemp-derived consumable projects possessed or sold in violation of the Chapter's retails sales laws to forfeiture. Excludes products unlawfully used by someone other than the owner without the owner's consent. Details procedures for an order of seizure in the event the product subject to forfeiture was not already seized as part of an arrest or search. Details storage requirements, judicial authority, and dispositional options for hemp-derived consumable products subject to forfeiture. Includes directives for the proceeds of a disposition by sale. Allows an owner of or holder of a security interest in a seized hemp-derived consumable product (other than the defendant) to apply to protect the person's interest in the product at any time before forfeiture is ordered. Lists three dispositional alternatives a judge may order if the judge finds the owner or holder of a security interest did not consent to the product's unlawful use and the person can lawfully possess the product. Provides for in rem actions against hemp-derived consumable products seized for forfeiture where the owner is unknown or unavailable for trial. Allows an owner of a hemp-derived consumable product seized for forfeiture to apply to a judge for return of the product if no criminal charge is filed within a reasonable time after seizure, so long as possession by the owner would be lawful.
Delineates seven qualifying criteria to obtain and hold a permit under the Chapter, including being at least 21; not having any felony convictions within three years; having citizenship rights restored if convicted of a felony more than three years prior; not having a retail sales law conviction within five years; and not having a misdemeanor controlled substance conviction within five years. Authorizes the Commission to not take action against a permittee who is disqualified by the criminal history requirements in order to avoid undue hardship. Details the meaning of criminal convictions and the affect of convictions and permit revocations in other jurisdictions. Lists persons associated with a business that must meet permittee criteria in order for the business to obtain and hold a permit. Requires the Department of Revenue to provide tax information needed for the Commission to confirm a person's compliance with the qualifying criteria related to tax returns and payments. Bars the Commission from issuing or renewing a permit until receipt of a notice of compliance from the Department of Revenue, unless the criteria is otherwise satisfied by an operative agreement covering any amounts collectible pursuant to state law. Adds that the APA does not apply to the Commissions actions related to an applicant or permittee's qualifications related to tax returns and payments.
Conditions issuance of a permit upon the Commission's satisfaction that the applicant is a suitable person to hold a permit and that the location is a suitable place to hold the permit for which the applicant has applied. Lists factors the Commission is required to consider, including whether the operation of the retail seller permit applicant's business at that location would be detrimental to the neighborhood as specified. Gives the Commission sole discretion in determining suitability and qualifications of the applicant and the location. Details application requirements and procedures, including the Commission and ALE Division investigating the applicant and premises, and conducting background checks of applicants. Deems making false statements in a permit application unlawful and grounds for denial, suspension, revocation, or other disciplinary action. Sets nonrefundable application fees. Makes permits valid for one year. Establishes procedures for permit renewal. Provides for expiration of a permit upon certain changes in ownership or membership with exceptions for qualifying successors, as described. Requires corporation permittees to submit an application for substitution of a manager within 30 days of employing a new manager, as specified. Deems permits nontransferable. Provides for duplicate permits and new permits to address personal or business name changes.
Establishes requirements and limitations specific to retail seller permits and delivery seller permits including the authority under each, to whom the permit must be issued, and whether the terms of a management agreement requires the manager be issued a permit. Details requirements for posting permits held by an establishment. Bars issuing permits to a business on the campus or property of a public school, college, or university. Deems permits to automatically expires if the activity authorized is not commenced within six months, subject to waiver by the Commission for good cause. Requires the Commission to send notice of permit issuance to the Department of Revenue, the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Use Services, and ALE Division. Authorizes the Commission to issue and revoke temporary permits for applicants as specified. Requires applications by available on the Commission's website and allows for their electronic submission. Requires acceptance of electronic payment for required fees, subject to processing fees of up to $5.
Allows permit applications to be filed simultaneously or combined with applications for ABC permits. Authorizes the Commission to use and incorporate any information submitted in conjunction with an ABC permit.
Establishes responsibilities of a retail seller permittee with regard to the premises, employees, and purchasers. Specifies persons disqualified from employment by permittees. Requires employees or agents of a retail seller to demand proof of age from a prospective purchaser of hemp-derived consumable products before the product is released to the purchaser if the person has reasonable grounds to believe the purchaser is under 30. Establishes age verification and signature requirements for delivery sellers. Lists six required components for training employees and agents of retail sellers, including the Chapter's penalties for sales to underage persons. Provides the language of a consumer statement that must be prominently displayed by retail dealers.
Makes it unlawful for a permittee or their agent or employee to knowingly allow on the licensed premises: (1) Chapter violations; (2) fighting or disorderly conduct that can be prevented without undue danger to the permittee or their employees or agents; or violation of state law, including laws governing controlled substances, gambling, or prostitution. Makes it unlawful for a permittee to fail to superintend in person or through a manager the business for which the permit is issued.
Prohibits a permittee from selling hemp-derived consumable products through displays accessible to the public without the assistance of their agent or employee. Excepts instances where the establishment is only open to persons at least 21. Describes six unlawful acts, including (1) producing, possessing, or displaying a false permit; (2) offering hemp-derived consumable products for sale in a vending machine; and (3) distributing hemp-derived consumable products not FDA-approved or authorized.
Makes it a Class 2 misdemeanor to sell, aid, assist, or abet any other person in selling hemp-derived consumable products to any person under 21, or purchasing such products on behalf of a person under 21. Makes it an infraction for a person under 21 to purchase or accept, or attempt to purchase or accept, hemp-derived consumable products, not subject to a fine or court costs. Makes it a Class 2 misdemeanor for a person under 21 to present or offer false or fraudulent proof of age for purchasing or receiving any hemp-derived consumable product. Creates an aiding and abetting infraction and Class 2 misdemeanor offense for offenders under 21. Provides exceptions to the established crimes for when possession, receipt, selling, transporting, or dispensing is required pursuant to a permit in the performance of the person's duties of employment or contract with a permittee, subject to youth employment statutes and Commission rules. Establishes and lists requirements for criminal exceptions for persons under 21 assisting in compliance, inspection, and research under the Chapter. Provides three available defenses to sellers, including showing that the purchaser produced an acceptable form of identification reasonably describing the purchaser; producing evidence of other facts that reasonably indicated at the time of sale that the purchaser was at least the required age; or showing that the purchaser used a biometric identification system meeting the two described criteria. Allows for deferred prosecution or conditional discharge of the Chapter's misdemeanor offenses so long as the defendant has not previously been placed on probation for violation of the Article, stated under oath.
Authorizes a court to order restitution to any law enforcement agency for reasonable expenditures made in purchasing product from the permittee or their agent in the investigation leading to a person's conviction of a violation of the retail sales laws.
Makes all other violations of the Chapter a Class 1 misdemeanor, subject to the Chapter's provisions governing disposition and forfeiture of seized products, and restitution.
Amends GS 18B-500, expanding the authority of ALE agents to include arresting and taking investigatory and enforcement actions for criminal offenses occurring, encountered, or otherwise discovered on the premises of, or relating to, a location holding a permit issued pursuant to new GS Chapter 18D, as well as other criminal offenses discovered while investigating or enforcing the provisions of GS Chapter 18D or GS Chapter 90, Article 5 (the Controlled Substances Act).
Amends GS 15A-145 to include offenses for the sale of a hemp-derived consumable product to a person under 21 to those which a person may petition for expunction if the offense was committed before the person was 21, so long as the section's other eligibility criteria are met. Makes conforming changes. Makes language gender neutral.
Amends GS 15A-150, requiring clerks of superior court to file petitions granting a dismissal upon completion of a conditional discharge under new GS 18D-505 to the Administrative Office of the Courts. No longer requires the same for dismissals upon completion of a conditional discharge under GS 14-313(f), governing deferred prosecutions and conditional discharge for misdemeanor offenses relating to the sale or distribution of tobacco products to persons under 18.
Adds to the Commission powers under GS 18B-203: (1) the power to provide for the enforcement of hemp-derived consumable product retail sales laws set forth in new GS Chapter 18D in conjunction with ALE Division, and (2) the power to issue permits and impose sanctions against GS Chapter 18D permittees.
Enacts GS 18B-908, allowing for simultaneous or combined applications for ABC permits and permits under GS Chapter 18D. Allows the Commission to use or incorporate any information for an ABC permit submitted in conjunction with a permit issued under GS Chapter 18D.
Provides for the issuance of permits, effective March 1, 2026, for permits effective May 1, 2026, through April 30, 2027.
Provides a savings clause for prosecutions of offenses committed before the effective date of the act.
Conditions the act's effect upon legislative appropriations to implement the act. Applies to permits effective on or after May 1, 2026, and offenses committed on or after May 1, 2026.