Bill Summaries: S315 NORTH CAROLINA FARM ACT OF 2019-20. (NEW)

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  • Summary date: Jun 11 2019 - View Summary

    Senate committee substitute modifies and adds to the 2nd edition as follows. 

    Deletes the proposed changes to GS 90-95 concerning penalties for hemp licensees with regard to Schedule VI controlled substance violations. Instead, enacts GS 90-94.5 to establish immunity for individuals possessing a valid hemp license issued by the NC Hemp Commission (Commission) from prosecution under the specified controlled substance laws with respect to the commodity cultivated by the licensee containing a THC level that exceeds the federally defined THC level for hemp. Excludes willful, knowing, or intentional violations from immunity. Specifies that no criminal penalty can attach to the specified negligent violations concerning production of cannabis with more than the federally defined THC level for hemp. Instead establishes that the penalty for a licensee's negligent violation will be determined by the Commission pursuant to GS 106-568.55B, as enacted. Effective and applies to offenses committed on or after the later of December 1, 2019, or 30 days after the effective date of specified regulations adopted by the US Department of Agriculture, and expire July 1, 2021. Enacts the same statute with nearly identical provisions, effective July 1, 2021; however, provides immunity for individuals possessing hemp licenses issued by the Department of Agriculture and Consumer Services rather than the Commission. Makes a conforming change to the statutory cross reference concerning disciplinary action for licensees.


  • Summary date: Jun 6 2019 - View Summary

    Senate committee substitute modifies and adds to the 1st edition as follows. 

    Changes the act’s long title and makes organizational changes.

    Sections 1 through 7

    Makes the following changes to Article 50E of GS Chapter 106. Retitles the Article as North Carolina Hemp Commission (was, Industrial Hemp). Amends the legislative findings and purpose set forth for the Article, declaring hemp to be a viable agricultural commodity and the promotion of the hemp industry to be in the best interest of citizens (previously established an agricultural pilot program for the cultivation of industrial hemp). Adds to the Article’s defined terms: cannabidiol, cannabinoid, commercial sale, cultivating, federally defined THC level for hemp, handling, hemp, hemp extract, licensee, processing, and smokable hemp. Removes commercial use, grower, industrial hemp, industrial hemp research program, state land grant university, and verified propagule from the defined terms given. Modifies the definitions for hemp product and tetrahydrocannabinol.

    Renames the NC Industrial Hemp Commission as the NC Hemp Commission (Commission) and sets current members’ terms to expire July 1, 2021. Now allows the two appointments of the Governor to the Commission to be a full-time faculty member or Emeritus faculty member of a State land grant university who regularly works in agricultural science or research (previously, limited to only full-time faculty members). Modifies and adds to the powers and duties of the Commission, now charging the Commission with establishing the NC Hemp Program (Program) to cultivate hemp in the state, issuing licenses for cultivating and handling hemp, and adopting necessary rules that prescribe sampling and testing procedures and set a schedule of nonrefundable fees for administering the Program. Eliminates all powers and duties related to the industrial hemp research program and cultivation licenses. Provides for hemp licensing qualifications for persons to cultivate or handle hemp in the state, issuable by the Commission and limited to qualifying farmers or conditional qualifying farmers. Allows the Commission to grant a license to cultivate hemp to a State agency or higher-learning institution, or an employee thereof for use in the scope of the employee's duties. Makes ineligible for licensure for a period of ten years any person convicted of a felony relating to a controlled substance under state or federal law. Honors licenses issued by the former NC Industrial Hemp Commission for the term of the license. Eliminates the funding limitations set forth for the Commission. Establishes a $250,000 minimum bonding requirement for hemp handler licensees, recoverable by any cultivator injured by a contracted handler, as specified.

    Directs the Commission to require compliance with corrective action plans for persons required to obtain a hemp license under the Article and determined to have negligently violated any of the Article’s provisions. Details corrective action plan requirements, including correcting the violation by a specified date and periodic reporting to the Commission for at least two years. Makes ineligible to obtain a hemp license for a period of five years any person who negligently violates the Article or related rules three times in a five-year period, in addition to being subject to criminal and civil penalties for additional violations during that period. Requires the Commission to immediately report to the Commissioner of Agriculture (Commissioner), the Attorney General, and the appropriate law enforcement authority any violation of the Article or related rules that is reckless, willful, knowing, or intentional. Maintains the civil and criminal penalties under the Article, made applicable to hemp rather than industrial hemp.

    Adds that licenses are not required to possess, handle, transport, or sell hemp products or hemp extracts. Provides for export of hemp products consistent with the laws of the receiving jurisdiction.

    Establishes the NC Hemp Program Fund, housed in the Department of Agriculture and Consumer Services (Department), to be used by the Commission and the Department for the costs of personnel, program administration, testing, and any other costs incurred in administering the Article, including promotion, marketing, and branding of hemp grown and processed in the state.

    Directs (rather than authorizes) the Commission to adopt temporary rules to implement the above provisions of Section 1 of the act, effective until permanent rules are adopted (was, for 180 days after the effective date of the section).

    Deletes the previous provisions concerning the consideration of current members of the Industrial Hemp Commission in the appointment of members to the Commission. 

    Repeals Article 50E in its entirety, effective July 1, 2021.

    Amends GS 90-87 to exclude from the definition of marijuana hemp, hemp products, hemp extracts, and smokable hemp (was, excluded industrial hemp only) when produced and used in compliance with the Controlled Substances Act and rules adopted by the Commission. Amends GS 90-94 to exclude from schedule VI controlled substances tetrahydrocannabinols in hemp, hemp products, hemp extracts, or smokable hemp. Amends GS 90-95 to provide that any person who manufactures, sells or delivers, or possesses with intent to manufacture, sell, or deliver a controlled substance classified in Schedule VI is to be punished by being required to comply with a corrective action plan issued by the Commission for a first or second offense so long as the person has a valid hemp license and they did not willfully, knowingly, or intentionally cause the controlled substance to exceed the federally defined THC level for hemp. Sets out the same punishment for any person with a valid hemp license who possesses a controlled substance classified in Schedule VI. 

    The above changes are effective and apply to offenses committed on or after the later of December 1, 2019, or 30 days after the effective date of specified regulations adopted by the US Department of Agriculture, and expire July 1, 2021. 

    Amends GS 105-113.106 to define hemp as used in Article 2D, Unauthorized Substances Taxes, to mean hemp, hemp extracts, and hemp products. Exempts lawfully possessed hemp from unauthorized substance taxes under GS 105-113.107A. Effective for taxable years beginning on or after July 1, 2019, and expire July 1, 2021.

    Now requires the Commissioner (in consultation with the Governor and Attorney General) to submit to the Secretary of the US Department of Agriculture a State plan for the regulation of hemp production (was, six months after the specified regulations are adopted by the US Department of Agriculture). Sets out six elements (was, four) that must be included in the plan, including a procedure to maintain information regarding land on which hemp is produced in the state, and a procedure for the disposal of products that are produced in violation of new Article 50F or any rule adopted by the Commission. Additionally requires the plan to include a procedure for conducting annual inspections and submitting information on each hemp producer to the US Department of Agriculture Secretary. Maintains that an amended plan must be submitted if the initial plan is disapproved. 

    Amends SL 2015-299, Section 4, to change the expiration of the act (establishing Article 50E, which regulates industrial hemp) until the later of December 1, 2019, or 30 days after the effective date of the specified regulations adopted by the US Department of Agriculture (was, the date that the NC Industrial Hemp Commission adopts and submits to the Governor and Revisor a resolution that a State industrial hemp pilot program is no longer necessary because federal legislation has been enacted and taken effect that removes industrial hemp from the federal Controlled Substances Act). 

    Sections 8 through 11

    Modifies proposed Article 50F, North Carolina Hemp Program, GS Chapter 106, as follows. 

    Adds cannabinoid and smokable hemp to the defined terms, and modifies the definitions set forth for hemp extract, hemp product, and tetrahydrocannabinol, mirroring the definitions of those terms provided in Article 50E, as amended. Eliminates the NC Hemp Commission. Makes changes throughout the Article to refer to the Department rather than the Commission, including granting the Department and the Commissioner the powers and duties previously granted to the Commission. Eliminates the previous provisions which directed that rules required to be adopted regarding sampling and testing procedures use a decarboxylation testing method. Modifies the Article’s civil penalties, authorizing a civil penalty not exceeding $2,500 per violation against any person who knowingly or intentionally manufactures, delivers, sells, or possesses smokable hemp, except for hemp plants or parts of a hemp plant grown or handled by a licensee for processing or manufacturing into a legal hemp product. Additionally makes it a Class 1 misdemeanor to knowingly or intentionally manufacture, deliver, sell, or possess smokable hemp, except for hemp plants or parts of a hemp plant grown or handled by a licensee for processing or manufacturing into a legal hemp product (mirroring the civil and criminal penalties set out in Article 50E, as amended). Modifies the provision which specifies that no license is required to possess, handle, transport, or sell hemp products or hemp extracts, no longer specifically including those containing CBD or other hemp-derived cannabinoids. Makes further conforming and technical changes.

    Now grants the Department enforcement authority of rules adopted by the Commission to implement Section 1 of the act until the Department amends or repeals the rules.

    Further amends GS 90-87 to also exclude from the definition of marijuana smokable hemp. Changes the statutory cross-reference. Amends GS 90-94 to exclude from schedule VI controlled substances tetrahydrocannabinols in hemp, hemp products, hemp extracts, or smokable hemp (mirroring the changes made to GS 90-94 by the act, expiring July 1, 2021). Modifies the proposed changes to GS 90-95 to provide that any person who manufactures, sells or delivers, or possesses with intent to manufacture, sell, or deliver a controlled substance classified in Schedule VI is to be punished by being required to comply with a corrective action plan issued by the Department (rather than the Commission, eliminated by the act) for a first or second offense so long as the person has a valid hemp license and they did not willfully, knowingly, or intentionally cause the controlled substance to exceed the federally defined THC level for hemp (rather than a specified concentration). Makes the same changes to the provisions setting out the same punishment for any person with a valid hemp license who possesses a controlled substance classified in Schedule VI. 

    Amends GS 105-113.106 to define hemp as used in Article 2D, Unauthorized Substances Taxes, to mean hemp, hemp extracts, and hemp products. Exempts lawfully possessed hemp from unauthorized substance taxes (mirroring the changes made to GS Chapter 105 made by the act, expiring July 1, 2021, with necessary changes to statutory references). 

    Effective July 1, 2021 (was the date that the NC Industrial Hemp Commission adopts and submits to the Governor and Revisor a resolution that a State industrial hemp pilot program is no longer necessary because federal legislation has been enacted and taken effect that removes industrial hemp from the federal Controlled Substances Act).

    Section 12

    Amends GS 106-121, adding the term cannabinoid related compounds, applicable to Article 12, Food, Drugs and Cosmetics. Modifies the proposed changes to GS 106-139, now directing the Board of Agriculture to adopt rules to establish current good manufacturing practices in manufacturing, packaging, labeling, or holding operations cannabinoid-related compounds derived from hemp (was, compounds related to industrial hemp), and prohibits engaging in manufacturing, packaging, labeling, processing, holding or selling of cannabinoid-related compounds without a valid license (previously did not include selling). Now directs the Board of Agriculture to develop a schedule of license fees to be used to cover costs of administering the licensing program. Eliminates the proposed provision which excluded retail establishments, wholesalers, and warehousing operations that do not engage in the manufacturing, packaging, or labeling of cannabinoid related compounds from licensure requirements. Makes the changes effective January 1, 2020 (was, effective on the date that the Commission adopts and submits the specified resolution to the Governor and to the Revisor of Statutes) and sunsets the provisions on July 1, 2021. Makes similar changes to the proposed changes to GS 106-139 to allow the Board of Agriculture to adopt rules to establish current good manufacturing practices in manufacturing, packaging, labeling, holding, or selling cannabinoid-related compounds derived from hemp, now effective July 1, 2021 (was, the date the Industrial Hemp Commission adopts and submits the resolution). Directs the Board of Agriculture to adopt temporary rules to implement Section 12 by November 1, 2019. 

    Section 13

    Further amends GS 106-550 to make technical changes. Maintains proposed GS 106-554.1 regarding applications for hemp referendums, now providing for the statute to expire July 1, 2021. Provides that the changes to GS 106-550 and proposed GS 106-554.1 are effective when the act becomes law (was, the date that the NC Industrial Hemp Commission adopts and submits to the Governor and Revisor a resolution that a State industrial hemp pilot program is no longer necessary because federal legislation has been enacted and taken effect that removes industrial hemp from the federal Controlled Substances Act).

    Section 14

    Amends GS 106-568.56, as amended, adding to the civil penalties provisions. Authorizes a civil penalty not exceeding $2,500 per violation against any person who knowingly or intentionally manufactures, delivers, sells, or possesses smokable hemp, except for hemp plants or parts of a hemp plant grown or handled by a licensee for processing or manufacturing into a legal hemp product. Amends GS 106-568.57, as amended, making it a Class 1 misdemeanor to knowingly or intentionally manufacture, deliver, sell, or possess smokable hemp, except for hemp plants or parts of a hemp plant grown or handled by a licensee for processing or manufacturing into a legal hemp product. Applies to offenses occurring on or after December 1, 2020.

    Requires the Department, the NC Industrial Hemp Association, the Commission, the State Bureau of Investigation, and other law enforcement agencies and district attorneys at the request of the SBI, to meet at least quarterly to discuss best practices for the hemp industry. Directs the Department to report any findings and recommendations from the meetings to the specified Commission within 30 days.

    Requires the State Bureau of Investigation to notify the Agriculture and Forestry Awareness Study Commission when the US Drug Enforcement Agency has adopted an approved immediate testing method to determine whether hemp is within the federally defined THC level for hemp, at which time the Commission must conduct a study on whether the prohibition on the sale of smokable hemp should be repealed.

    Sections 15 and 16

    Maintains proposed GS 62-193, concerning disposition of certain unused easements, and GS 20-150(e1), concerning right-of-way for farm equipment turning left.

    Section 17

    Modifies the proposed changes to GS 136-129 concerning outdoor advertising devices, to exempt specified outdoor advertising promoting a bona fide farm from the prohibition on outdoor advertising within 660 feet of the right-of-way of the interstate or primary highway system, so long as the outdoor advertising promotes a bona fide farm that is exempt from specified zoning regulations and the sign is more than three feet long on any side and it is located on any bona fide farm property owned or leased by the owner or lessee of the bona fide farm (previously did not specify that the sign must be located on a property owned or leased by the owner or lessee of the bona fide farm; instead required the sign to be located on the bona fide farm property).

    Sections 18 and 19

    Maintains the proposed changes to GS 120-150, concerning the Agriculture and Forestry Awareness Study Commission, and the directives regarding the implementation of the odorous emissions rule by the Environmental Review Commission. 

    Section 20

    Modifies the proposed changes to GS 99E-30 and GS 153A-340 to additionally include equestrian activities in the definition of agritourism activity, and to no longer explicitly exclude hunting or shooting sporting involving semiautomatic centerfire rifles from the definition of agritourism acitivity. Instead, amends GS 99E-30 and GS 153A-340 to require properties used for shooting sports to comply with guidelines for design and site evaluation as established by the Wildlife Resources Commission. Further amends GS 153A-340 to require a vote of the full board of county commissioners to determine whether a property used for shooting sports is in compliance with the Wildlife Resource Commission's guidelines. Makes technical changes.

    Enacts GS 153A-145.8 (concerning counties) and GS 160A-203.2 (concerning cities) to prohibit counties and cities from requiring catering permits for businesses located on property used for bona fide farm purposes that provide catering services on- and off-site from the property. Clarifies that the statutes do not exempt the businesses from any health and safety rules adopted by the local health department, the Department of Health and Human Services, or the Commission of Public Health.

    Section 21

    Modifies proposed Article 87 of GS Chapter 106, now titling the Article as the NC Sweetpotato Act (was, the NC Sweet Potato Act of 2019), and making conforming changes throughout to refer to sweetpotatoes instead of sweet potatoes. Makes further technical changes. Now requires the Commissioner to remit all royalties and license fees under the Article to the NC SweetPotato Commission for the promotion of North Carolina sweetpotatoes, less any costs for regulating trademarks (previously, the Commissioner was to keep all royalties and fees for the promotion of the crop as well as to cover the costs for trademark regulation). No longer specifically refers to the US Standards for Grades of Sweetpotatoes effective April 21, 2005; instead adopts the most recently adopted US Standards for Grades by reference. Adds a new requirement for membership of the NC Sweetpotato Advisory Council to include at least one sweetpotato processor and at least one sweetpotato retailer. Makes further technical changes.

    Section 22

    Maintains the proposed changes to GS 89C-25, GS 139-3, and GS 139-4, concerning the program for granting job approval authority to the Soil and Water Conservation District staff and employees of the Division of Soil and Water Conservation. Makes technical changes to the proposed changes to GS 89C-25 and GS 139-4.

    Section 23

    Maintains the proposed changes to GS 105-277.4, regarding present use value of agricultural, horticultural, and forestland.

    Section 24

    Amends Section 10.24(a) of SL 2017-57, renaming the Food Processing Innovation Center Committee as the NC Food Innovation Lab Committee.

    Section 25

    Enacts GS 139-8.2, requiring information collected by soil and water conservation districts from farm owners, animal owners, agricultural producers, or owners of agricultural land that is confidential under federal or state law to be held confidential by the soil and water conservation districts. Specifically includes information provided by an agricultural producer or owner of agricultural land concerning the agricultural operation, farming, or conservation practices, or the land itself, in order to participate in soil water conservation programs and geospatial information otherwise maintained by the district about agricultural lands or operations for which information described as confidential is provided. Excludes applications for cost share assistance and associated contract documents that require the approval of the soil and water conservation district or the Soil and Water Conservation Commission. Effective October 1, 2019.

    Section 26

    Enacts Article 9, Right to Repair Act, to GS Chapter 75. Sets forth 12 defined terms. Requires original farm equipment manufacturers (manufacturers) of farm equipment sold or used in North Carolina to make diagnostic and repair information available to independent repair facilities, as defined, or owners of the manufacturer's products, free of charge and in the same manner the manufacturer makes them available to its authorized repair providers. Defines farm equipment to mean equipment that is used or intended for use in a farm operation, including any combine, tractor, implement, engine, motor, or attachment; excludes motor vehicles. Requires those manufacturers to make farm equipment parts available for purchase by the owner, owner’s agent, or any independent repair provider on fair and reasonable terms. Prohibits manufacturers that sell information to independent repair providers or owners in a standardized format, on conditions more favorable than those under which an authorized repair provider obtains the same information, from requiring the authorized repair provider to continue to purchase that information in a proprietary format, unless the proprietary format includes documentation or functionality not available in the standardized format. Requires manufacturers to make diagnostic repair tools available for purchase by owners and independent repair providers available to any authorized repair providers. Manufacturers that provide repair information to aftermarket service information publications and systems have fully satisfied their obligations under this statute. Requires farm equipment manufactured and sold or used for security-related functions to include necessary documentation to reset a security-related electronic function from information provided to owners and independent repair facilities, and authorizes provision of the information through an appropriate secure data release system. 

    Does not require divulging of trade secrets. Does not affect agreements between authorized repair providers and manufacturers. Grants authorized repair providers all rights under this statute, except in the case of a dispute under an existing agreement. Does not require manufacturers or authorized repair providers to provide an owner or independent repair provider with nondiagnostic and nonrepair information provided to an authorized repair provider by the manufacturer pursuant to an agreement or contract.

    Places enforcement authority with the Attorney General and authorizes civil penalties of up to $500 per violation of the Article. Also establishes a claim for an owner or independent repair provider to recover from a manufacturer up to $500 per violation.

    Effective October 1, 2019.

    Section 27

    Amends GS 143-215.10I, concerning swine farm modifications, to condition modification of an animal waste management system permit upon the permitting action not resulting in an increase in the permitted capacity of the swine farm, as measured by the annual steady state live weight capacity of the farm. Makes further organizational and clarifying changes. 

    Section 28

    Amends GS 143-215.71 and GS 143B-135-238 (appears to intend GS 143B-135.238) to specify that projects cannot receive grant funding from both the Environmental Quality Incentives Program and the Clean Water Management Trust Fund.

    Directs the Department of Environmental Quality (DEQ) and the Department of Natural and Cultural Resources to jointly report to the specified NCGA committee by September 30, 2019, regarding funding overlaps between water resources development grant funding and Clean Water Management Trust Fund grants for the Western Stream Initiative (Initiative) and the efforts of the Departments to improve administration of grants for the Environmental Quality Incentives Program.

    Section 29

    Directs DEQ to develop performance management procedures for projects funded as part of the Initiative, including the collection and reporting of 10 specified measures for all projects receiving grant funding. Requires the Department of Natural and Cultural Resources to provide DEQ with the specified measures relevant to funding for the Initiative provided by the Clean Water Management Trust Fund. 

    Amends GS 143-215.72, establishing an annual reporting requirement for DEQ regarding grants for projects funded through the Initiative (defined as the portion of the federal Environmental Quality Incentives Program funding provided to the Western Stream Initiative for certain counties). Requires the report to be submitted to the specified NCGA committee and division by November 1, and requires the report to include measures of grant administration and grant implementation efficiency and effectiveness.

    Section 30

    Directs the Office of the State Auditor to audit all State funds ever paid to the Resources Institute for the Initiative through the Clean Water Management Trust Fund and Water Resources Development Grants for the Environmental Quality Incentives Program no later than June 1, 2020. Directs the Director and Board of Trustees of the Clean Water Management Trust Fund and DEQ to seek recoupment of any identified overpayment of State funds based on the audit’s findings.

    Section 31

    Maintains the act’s severability clause and effective date provision. 


  • Summary date: Mar 20 2019 - View Summary

    Enacts new Article 50F, North Carolina Hemp Commission, in GS Chapter 106, providing as follows. Includes the NCGA’s findings related to hemp. Defines hemp as the plant Cannabis sativa (L.) and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, within the federally defined THC level for hemp. Defines hemp extract as an extract from hemp, or a mixture or preparation containing hemp plant material or compounds. Defines hemp product as any product within the federally defined THC level for hemp derived from, or made by, processing hemp plants or plant parts, that are prepared in a form available for commercial sale, including, but not limited to, cosmetics, personal care products, food intended for animal or human consumption, cloth, cordage, fiber, fuel, paint, paper, particleboard, plastics, and any product containing one or more hemp-derived cannabinoids, such as cannabidiol.

    Establishes the nine-member North Carolina Hemp Commission (Commission). Provides that members, appointed by the Commissioner of Agriculture (Commissioner), NCGA, and Governor, serve four-year terms with initial terms effective July 1, 2019, with staggered membership terminating on specified dates. Establishes the Commission’s duties, including issuing licenses allowing a person, firm, or corporation to cultivate or handle hemp. Allows the Commission to adopt temporary rules to implement the act for 180 days after effective date.

    Prohibits a person from cultivating or handling hemp in this state without a hemp license issued by the Commission. Limits individuals who are able to obtain a license to cultivate hemp to those who are qualifying farmers or a conditional qualifying farmer.  Makes any person convicted of a felony related to a controlled substance ineligible to obtain any hemp license for 10 years following conviction. Any person who materially falsifies license application information is ineligible to obtain a license.

    Requires licensees to furnish the Commissioner with a bond in the amount of no less than $25,000. Allows a new bond or increased bond amount if the Commissioner finds it necessary for the cultivator’s protection.

    Requires any person who is required to obtain a hemp license issued to comply with a corrective action plan if the Commission determines that the person has negligently violated any provision of this Article or any rule adopted by the Commission. Requires the corrective action plan to include at least the date by which the violation will be corrected and a requirement that the person will periodically report on the person's compliance for at least the next two calendar years. Sets the penalty for a negligent violation of any provision of this Article or any rule adopted by the Commission as compliance with a corrective action plan; negligent violations of this Article or any rule adopted by the Commission three times in a five-year period makes the individual ineligible to obtain a hemp license for five years beginning on the date of the third violation and the individual is subject to criminal and civil penalties for additional violations during that period.

    Allows civil penalties of no more than $2,500 per violation against any person who: (1) violates any provision of this Article or a rule adopted by the Commission, or conditions of any license, permit, or order issued by the Commission; (2) manufactures, distributes, dispenses, delivers, purchases, aids, abets, attempts, or conspires to manufacture, distribute, dispense, deliver, purchase, or possesses with the intent to manufacture, distribute, dispense, deliver, or purchase marijuana on property used for hemp production, or in a manner intended to disguise the marijuana due to its proximity to hemp; (3) provides the Commission with false or misleading information in relation to a license application or renewal, inspection, or investigation authorized by this Article; or (4) tampers with or adulterates a hemp crop lawfully planted.

    Makes it a Class I felony to willfully, knowingly, or intentionally manufacture, distribute, dispense, deliver, purchase, aid, abet, attempt, or conspire to manufacture, distribute, dispense, deliver, purchase, or possess with the intent to manufacture, distribute, dispense, deliver, or purchase marijuana on property used for hemp production, or in a manner intended to disguise the marijuana due to its proximity to hemp. Makes it a Class 1 misdemeanor to (1) willfully, knowingly, or intentionally provide the Commission with false or misleading information or (2) willfully, knowingly, or intentionally tamper with or adulterate a hemp crop lawfully planted.

    Exempts from licensing possessing, handling, transport, or selling hemp products or hemp extracts. Allows hemp products to be transported to other states and exported to foreign nations.

    Establishes the North Carolina Hemp Program Fund (Fund) in the Department of Agriculture and Consumer Services (DACS), consisting of amounts received from appropriations and any other proceeds from gifts, grants, federal funds, application fees, license fees, and any other funds made available for purposes of this Article. Limits the Fund’s use to the costs of personnel, program administration, testing, and any other costs incurred in administering this Article, including promotion, marketing, and branding of North Carolina grown and processed hemp.

    Amends GS 106-139 by adding the following provisions. Allows the Board of Agriculture to adopt rules to establish current good manufacturing practices in manufacturing, packaging, labeling, or holding operations for cannabinoid-related compounds derived from industrial hemp. Prohibits the manufacture, sale, delivery, holding, or offering for sale of any cannabinoid-related compounds that does not comply with the Board’s rules. Prohibits engaging in manufacturing, packaging, labeling, processing, or holding of cannabinoid-related compounds without a valid license. Exempts retail establishments, wholesalers, and warehousing operations that do not engage in the manufacturing, packaging, or labeling of cannabinoid-related compounds. Specifies information that is to be included on the license application. Makes failure to comply with Article 12 (Food, Drugs and Cosmetics) or related regulations cause for license suspension or revocation.

    The above provisions are effective on the date that 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 United States Congress has enacted legislation that removes industrial hemp from the federal Controlled Substances Act and (2) the legislation has taken effect.

    Effective on the date that the Commission adopts and submits the resolution to the Governor and to the Revisor of Statutes, amends GS 106-139 again to allow the Board of Agriculture to adopt rules to establish current good manufacturing practices in manufacturing, packaging, labeling, or holding operations for cannabinoid-related compounds derived from hemp (was, industrial hemp).

    Amends GS 90-87 to exclude from the definition of marijuana hemp, hemp products, or hemp extracts (was, excluded industrial hemp only). Amends GS 90-95 to provide that any person who manufactures, sells or delivers, or possesses with intent to manufacture, sell, or deliver a controlled substance classified in Schedule VI is to be punished by being required to comply with a corrective action plan for a first or second offense so long as the person has a valid hemp license and they did not willfully, knowingly, or intentionally cause the controlled substance to exceed the specified concentration. Sets out the same punishment for any person with a valid hemp license who possesses a controlled substance classified in Schedule VI. Effective on the date that 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 United States Congress has enacted legislation that removes industrial hemp from the federal Controlled Substances Act and (2) the legislation has taken effect.

    Requires within six months of the adoption of rules by the US Department of Agriculture pursuant to Section 297D of the Agriculture Marketing Act of 1946, as amended by the Agriculture Improvement Act of 2018, that the Commissioner (in consultation with the Governor and Attorney General) submit to the Secretary of the US Department of Agriculture a State plan for the regulation of hemp production. Sets out four elements that must be included in the plan including a procedure to maintain information regarding land on which hemp is produced in the state, and a procedure for the disposal of products that are produced in violation of new Article 50F or any rule adopted by the Commission. Requires an amended plan be submitted if the initial plan is disapproved. Effective when the act becomes law.

    Amends GS 106-550 to declare it in the interests of the public welfare that the state’s farmers who produce hemp (along with producers of other specified crops) be permitted and encouraged to act in cooperation with growers, handlers, dealers, and processors in promoting and stimulating the increased production, use, and sale of such agricultural commodities. Enacts new GS 106-554.1 making the Commission the entity that provides certification and approval for the purpose of conducting a referendum among hemp growers or producers. Requires the Commission to perform the same function as the Board of Agriculture in all other respects for cultivators of hemp.  Effective on the date that 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 United States Congress has enacted legislation that removes industrial hemp from the federal Controlled Substances Act and (2) the legislation has taken effect.

    Amends SL 2015-299, Section 4, to change the expiration of the act (establishing Article 50E, which regulates industrial hemp) until the date that the North Carolina Industrial Hemp Commission adopts and submits to the Governor and Revisor a resolution that a State pilot program allowing farmers to lawfully grow industrial hemp is no longer necessary because (1) the United States Congress has enacted legislation that removes industrial hemp from the federal Controlled Substances Act and (2) the legislation has taken effect (was, expired on June 30 of the fiscal year in which such a resolution was adopted).

    Enacts GS 62-193, allowing the underlying fee owner of land encumbered by any easement acquired by a utility company to file a complaint with the Utilities Commission for an order requiring the utility company to terminate the easement, in exchange for payment of its fair market value, when construction has not been commenced by the utility company for the purpose for which the easement was acquired within 20 years of the date of acquisition (whether acquired by purchase or condemnation). Provides for service and response of the complaint, including disagreement with termination by the utility company, in which case the Commission must determine (1) whether the easement is necessary or advisable for the utility company’s long-range needs for the provisions of services to its service area or (2) whether the termination of the easement would be contrary to the using and consuming public’s interest. Permits a hearing on the matter, and provides an appeals process for an appeal of the Commission’s decision by either party. Places the burden of proof on the utility company. Provides a process for instances when the underlying fee owner and the utility company cannot reach a mutually agreed upon fair market value of the easement. Prohibits the underlying fee owner from filing a second complaint with the Commission regarding the same easement for a period of five years if the Commission decides that the easement should not be terminated. Defines utility company. Effective October 1, 2019.

    Amends GS 20-150 to prohibit drivers from overtaking and passing self-propelled farm equipment proceeding in the same direction that is making a left turn or signaling an intent to do so. Applies to offenses committed on or after December 1, 2019.

    Amends GS 136-129 to exempt specified outdoor advertising promoting a bona fide farm from the prohibition on outdoor advertising within 660 feet of the right-of-way of the interstate or primary highway system.  In order to be exempt, the outdoor advertising must promote a bona fide farm that is exempt from specified zoning regulations if the sign is more than three feet long on any side and it is located on the bona fide farm property (this replaces the exemption that applied to advertisements for the sale of any fruit or vegetable crop by the grower at a roadside stand or by having the purchaser pick the crop on the property if the sign met specified requirements). 

    Amends GS 120-150 by adding that the cochairs of the Agriculture and Forestry Awareness Study Commission serve two-year terms that begin on the convening of the NCGA in each odd-numbered year. Sets out provisions governing lack of successor, completion of service when not seeking reelection, and resignation.

    Requires that the Environmental Management Commission classify facilities storing products that are (1) grown, produced or generated on one or more agricultural operations and (2) that are renewable energy resources, as agricultural operations that are exempt from the requirements of 15A NCAC 02D .1806 (control and prohibition of odorous emissions). Requires adoption rules to amend 15A NCAC 02D .1806 consistent with this provision.

    Amends the definition of agritourism activity as it applies to Article 4, Argitourism Activity Liability of GS Chapter 99E, so that it also includes any activity carried out on a farm or ranch that allows members of the general public to view or enjoy hunting, fishing, and shooting sports (but excludes hunting or shooting sports involving semiautomatic centerfire rifles). Amends GS 153A-340(b)(2a) concerning the qualifications for a building or structure that is used for agritourism to meet a bona fide farm purpose by amending the definition of agritourism in the same manner as above.

    Enacts new Article 87, North Carolina Sweet Potato Act of 2019, in GS Chapter 87. Specifies that only sweet potatoes grown in the state may be designated for sale inside or outside of the state as North Carolina sweet potatoes. Allows the Commissioner of Agriculture (Commissioner) to create, register, license, promote, and protect a trademark for use on or in connection with the sale or promotion of North Carolina sweet potatoes and products containing North Carolina sweet potatoes. Allows collection of a reasonable royalty or license fee, to be determined by the Commissioner in consultation with representatives of the sweet potato industry and the Marketing Division of the Department of Agriculture and Consumer Services. Requires that funds from the royalties and license fees be used to promote North Carolina sweet potatoes and to pay costs associated with monitoring the use of the trademark, prohibiting the unlawful or unauthorized use of the trademark, and enforcing rights in the trademark. Allows the Board of Agriculture to adopt rules on quality standards, grades, packing, handling, labeling, and marketing practices for the marketing of sweet potatoes in this state, and other rules necessary to administer this Article. Also allows the adoption of rules establishing a registration, inspection, and verification program for the production and marketing of North Carolina sweet potatoes in the state. Requires all North Carolina sweet potatoes sold to conform to the prescribed standards and grades and be labeled. Provides for inspections by the Commissioner and the Commissioner's agents. Adopts as the standards for grades in this state the specified standard for grades adopted by the US Department of Agriculture, Agricultural Marketing Service. Requires the Commissioner to appoint a North Carolina Sweet Potato Advisory Council to render advice regarding the Commissioner's authority to regulate and promote sweet potatoes.

    Amends GS 89C-25 by providing that GS Chapter 89C (Engineering and Land Surveying) does not prevent practice by employees of the DACS Division of Soil and Water Conservation who have engineering job approval authority issued by the Natural Resources Conservation Service or the Soil and Water Conservation Commission that involves the planning, designing, or implementation of best management practices on agricultural lands, or for the planning, designing, or implementation of best management practices approved for cost-share funding pursuant to the specified programs. Amends GS 139-3 by defining the term job approval authority. Amends GS 139-4 by adding to the Soil and Water Conservation Commission’s duties developing and implementing a program for granting job approval authority to Soil and Water Conservation District staff and employees of the Division of Soil and Water Conservation to plan, design, and certify the installation of best management practices approved for cost-share funding pursuant to specified programs.

    Amends GS 105-277.4 by adding that if an assessor determines that property loses its eligibility for present-use value classification, the assessor must give written notice to the owner, including specified information; requires the notice to be separate from the regular yearly tax notice or bill. Requires that an appeal of the assessor’s determination be made within 60 days after date of the written notice. Adds that while an assessor’s decision of lost eligibility is under appeal, if the assessor determines that the property is no longer eligible because of an additional disqualifying event independent of the one that is the basis of the disqualification under appeal, the assessor must follow the same notice and appeal procedure for the subsequent disqualification. If notice is not given for the subsequent disqualification, reinstatement of the property is deemed effective for any assessments occurring from the date of the assessor’s decision under appeal to the date of the final decision of the county board or Property Tax Commission to reinstate the property. Effective for taxes imposed for taxable years beginning on or after July 1, 2019.

    Includes a severability clause.


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