Part I

Enacts new GS Chapter 18D, pertaining to the regulation of hemp-derived cannabinoid products.  Defines  Alcohol Law Enforcement (ALE) Division, batch, commission, hemp-derived cannabinoid, manufacture, proof of age, and serving.

Enacts GS 18D-101, which sets forth seven offenses involving the manufacture, sale, and distribution of hemp-derived cannabinoid products, as follows: (1) to knowingly sell or distribute a product containing a hemp-derived cannabinoid to a person who is under 21 years of age; (2) to knowingly purchase a product containing a hemp-derived cannabinoid on behalf of a person who is under 21 years of age; (3) to knowingly persuade, entice, send, or assist a person who is under 21 years of age to purchase, acquire, receive, or attempt to purchase a product containing  a hemp-derived cannabinoid; (4) to knowingly distribute samples of products containing a hemp-derived cannabinoid in or on a public street, sidewalk, or park; (5) to knowingly sell or distribute a product containing a hemp-derived cannabinoid without having first obtained proof of age from the purchaser or recipient; (6) to engage in the business of manufacturing, distributing, or selling a product containing a hemp-derived cannabinoid without a valid license issued in  accordance with new GS Chapter 18D; (7) to knowingly manufacture, distribute, or sell a product containing a hemp-derived cannabinoid that has a delta-9 tetrahydrocannabinol concentration of more than 0.3% on a dry weight basis. Exempts certain law enforcement efforts from GS 18D-101. Classifies violation of GS 18D-101 as a Class A misdemeanor and provides for civil penalties ranging from $5,000 to $15,000 and for suspension of hemp manufacturing licenses for initial and subsequent violations. Directs that the proceeds of any civil penalty be remitted to the Civil Penalty and Forfeiture Fund. Permits for forfeiture of products manufactured, distributed, or sold in violation of the offenses listed as 6 and 7 above.

Enacts GS 18D-102, which makes it a Class A1 misdemeanor for any person under 21 years of age to either (1) knowingly purchase, possess, or accept receipt of a product containing a hemp-derived cannabinoid or (2) knowingly present purported proof of age that is false, fraudulent, or not actually that person's for the purpose of purchasing or receiving a product containing a hemp-derived cannabinoid. Exempts certain law enforcement activities.

Authorizes the ALE Division to enforce the provisions of GS Chapter 18D. Requires ALE to conduct random, unannounced inspections at locations where products containing a hemp-derived cannabinoid are sold or distributed to ensure compliance with the provisions of GS Chapter 18D. Beginning January 1, 2025, requires the ALE Division to submit an annual report to the General Assembly describing in detail the ALE Division's enforcement efforts under GS Chapter 18D and to post the report on its website.  

Enacts GS 18D-104, which establishes a license for manufacturing, distribution, and selling of hemp-derived cannabinoid products, as follows. Requires a person or entity that is in the business of manufacturing, distributing, or selling products containing a hemp-derived cannabinoid in the state to obtain a license from the North Carolina Alcoholic Beverage Control Commission (Commission) authorizing the person or entity to engage in that business prior to the commencement of business or by January 1, 2024, whichever is later. Sets forth three requirements for licensure, including submission of information requested by the Commission, a fee, and consent to reasonable inspection and sampling by the ALE Division of the person’s inventory of products containing a hemp-derived cannabinoid. Specifies that a person is ineligible to obtain a license if they are serving sentence for, or for ten years following the completion of a sentence for a drug-related felony offense in any state or federal jurisdiction. Specifies the license is valid for one year and may be renewed annually. Sets forth schedule of annual renewal fees. Authorizes the Commission to adopt, amend, and repeal rules to carry out the provisions of Chapter 18D. Specifies that the rules are effective when adopted and filed pursuant to the APA. Directs that the revenue collected from fees established under GS 18D-104 must be remitted to the Department of Revenue (Department) on a monthly basis. The Department must then remit that revenue to the ALE Division to be used to cover costs incurred by the ALE Division from enforcing the provisions of GS Chapter 18D.

Enacts GS 18D-105, which sets forth requirements for testing of products containing a hemp-derived cannabinoid by laboratories approved by the Commission. Enacts GS 18D-106 which sets forth packing requirements, advertising restrictions, and ingestible product restrictions for products containing hemp-derived cannabinoids.  Enacts GS 18D-107, which sets forth nine things that continue to not be prohibited by GS Chapter 18D.

Effective October 1, 2023, and applies to offenses committed on or after that date.

Part II

Repeals the definition of hemp contained in GS 90-87(13a). Makes conforming changes to GS 18B-500(b)(1) (pertaining to ALE agents) to account for new licenses under GS 18D-104 and GS 90-94.1 (exemption for use or possession of hemp extract) to refer to new GS Chapter 18D. Effective October 1, 2023.

Part III

Appropriates $2 million from the General Fund to the Department of Public Safety (DPS) in nonrecurring funds for the 2023-2024 fiscal year to hire 20 full-time equivalent positions in the ALE division to serve as Special Agents and assist in implementing the provisions of the act. Appropriates $500,000 from the General Fund to the Department of Public Safety in nonrecurring funds for the 2023-2024 fiscal year to be used for any other costs incurred by the Commission and the ALE Division in implementing the provisions of the act. Effective July 1, 2023.

Part IV

Amends GS 106-121 (definitions provisions of the food, drugs, and cosmetics article) to add defined terms kratom processor and kratom product. Requires the Board of Agriculture (Board) to adopt rules for regulating kratom processors to ensure the quality and safety of kratom products sold in the state. Requires the Board to address registration, noncompliance, and adverse events reports in its rules. Specifies that the manufacture, sale, delivery, holding, or offering for sale of any kratom products that are falsely certified as compliant with the certification rules adopted by the Board under are be prohibited and also be subject to  GS 106-123 (injunction restraining violations) and GS 106-125 (adulterated or misbranded article).

Part V

Contains severability clause. 

Sets act’s effective date as July 1, 2023, except as otherwise provided.  Specifies that prosecutions for offenses committed before the effective date of the act are not abated or affected by the act, and the statutes that would be applicable but for the act remain applicable to those prosecutions.  

Requires the Board, DPS, and the ABC Commission to adopt rule that are consistent with the provision of the act. Allows for the APA procedures pertaining to temporary rules to apply to the rules adopted or amended by those entities.