House committee substitute makes the following changes to the 2nd edition.

Deletes the provisions of the previous edition and replaces it with the following.

Enacts new Article 50E, Industrial Hemp, in GS Chapter 106.

Sets out the General Assembly's findings and purpose. Defines terms as they are used in the new Article, including certified seed, commercial use, grower, hemp products, industrial hemp and tetrahydrocannabinol or THC.

Establishes the five-member North Carolina Hemp Commission (Commission), with members serving staggered four-year terms. Sets out membership requirements, and provides for naming a chair, filling vacancies, removing members, member reimbursement, establishing a quorum, and staffing.

Sets out the Commission's nine powers and duties, including establishing an agricultural program to grow or cultivate industrial hemp in the state; pursuing any permits or waivers from federal agencies necessary for the establishment of the industrial hemp cultivation pilot program established by this Article; issuing licenses allowing a person, firm, or corporation to cultivate industrial hemp for commercial purposes to the extent allowed by federal law; and studying and investigating marketplace opportunities for hemp products to increase the job base in the state by means of employment related to the production of industrial hemp. 

Requires the Commission to get funding from sources other than the state of at least $200,000 before undertaking any of its powers and duties under this new Article. Sets out further provisions concerning the return of unspent funds and carry over of funds.

Amends GS 90-87 to exempt from the definition of marijuana industrial hemp when the industrial hemp is produced and used in compliance with rules issued by the Board of Agriculture upon the recommendation of the Commission.

Allows the Board of Agriculture to adopt temporary rules to implement the act and requires the adoption of permanent rules as recommended by the Commission.

The changes to GS 90-87 are effective on the first day of the month following the adoption of permanent rules. 

The act expires on June 30 of the fiscal year in which the Commission adopts and submits to the Governor and to the Revisor of Statutes a resolution that a state pilot program allowing farmers to lawfully grow industrial hemp is no longer necessary because (1) the US Congress has enacted legislation that removes industrial hemp from the federal Controlled Substances Act and (2) the legislation has taken effect.

Changes the act's titles.