House committee substitute to the 7th edition makes the following changes.

Changes the definition of smokable hemp set forth in GS 106-568.51, applicable to Article 50E, NC Hemp Commission. Now defines the term to mean a product that does not exceed the federally defined THC level for hemp in a form that allows THC to be introduced into the human body by inhalation of smoke, including hemp buds, hemp flowers, whole or ground raw hemp plant material, hemp cigars, and hemp cigarettes (identical to the definition set forth in the 5th and 6th editions; previously, defined as harvested raw or dried hemp plant material, in a form intended to allow THC to be introduced into the human body by inhalation of smoke, including hemp buds or hemp flowers, hemp cigars, and hemp cigarettes, but excluding hemp extracts).

Eliminates the proposed member qualfiication modifications for the NC Hemp Commission set forth in GS 106-568.52 (previously, amended the qualifications to require one member from NC A&T, one member that is an historically underserved African-American small farmer, and one member recommended by the Small and Minority Farm Program). 

Eliminates proposed subsections (g) and (h) of GS 106-568.53A, which extended the privileges of hemp cultivator or handler licenses to the spouse of licensees, and established the licenses to be transferrable. Makes conforming organizational changes.

Modifies proposed GS 106-568.55A to prohibit the Hemp Commission from issuing a license to handle hemp to any person (rather than any person who processes hemp purchased from a cultivator) without satisfying the bonding requirements specified. No longer exempts from the bond requirements handlers who process only hemp grown by the handler.

Eliminates proposed GS 106-578.57(d), which made it a Class 2 misdemeanor to sell hemp, hemp products, or hemp extracts to a person less than 18 years old.

Makes technical changes to proposed GS 106-568.59, concerning the NC Hemp Program Fund.

Modifies the proposed changes to GS 90-87 to no longer enact definitions for the terms hemp, hemp extract, hemp product, and smokable hemp, applicable to the NC Controlled Substances Act. Additionally, eliminates the proposed changes to the term marijuana, which defined the term to include smokable hemp and exclude hemp, when under the control of a licensed cultivator or handler, hemp products, and hemp extracts. Instead, amends the definition set forth for marijuana to exclude hemp, hemp products, hemp extracts, and smokable hemp as defined in GS 106-568.51 (Article 50E of GS Chapter 106), when the hemp is produced and used in compliance with Article 5, the NC Controlled Substances Act, and rules adopted by the Hemp Commission (identical to the definition provided in the 5th edition). 

Amends the exception set forth for tetrahydrocannibinols in hemp products and hemp extracts from being included as a schedule VI controlled substance, to also except tetrahydrocannibinols in hemp and smokable hemp, as defined in Article 50E, GS Chapter 106 (identical to the exceptions set forth in the 5th edition).

Changes the effective date of the proposed changes to GS 90-87 and GS 90-94, and proposed GS 90-94.5, now making those provisions effective on the later of either December 1, 2019, or 30 days after the effective date of specified federal regulations. Additionally, reinstates the proposed sunset of those provisions on July 1, 2021 (identical to the provisions set forth in the 5th and 6th editions; previously, effective December 1, 2019, with no sunset). 

Makes further conforming changes.

Makes the following modifications to new Article 50F, NC Hemp Program, of GS Chapter 106, effective July 1, 2021.

Makes identical changes to the defined term smokable hemp as those made to the defined term applicable to Article 50E (identical to the definition set forth in the 5th and 6th editions; previously, defined to mean a material, compound, mixture, or preparation that allows THC to be introduced into the human body by inhalation of smoke, including whole or ground raw hemp plant material, including hemp buds, hemp flowers, hemp cigars, and hemp cigarettes). 

Makes identical changes to the proposed qualifications for licensed cultivators or handlers of hemp as those made to Article 50E, deleting subsection (f) and (g), which extended the privileges of hemp cultivator or handler licenses to the spouse of licensees, and established the licenses to be transferrable. Makes conforming organizational changes. 

Makes identical changes to the proposed bonding requirements for licensed cultivators or handlers of hemp as those made to Article 50E. Prohibits the Commissioner of Agriculture (Commissioner) from issuing a license to handle hemp to any person (rather than any person who processes hemp purchased from a cultivator) without satisfying the bonding requirements specified. No longer exempts from the bond requirements handlers who process only hemp grown by the handler.

Adds to the civil penalties set forth under the new Article to permit the Commissioner to access a civil penalty of up to $2,500 for knowingly or intentionally manufacturing, delivering, selling, or possessing 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 (identical to the civil penalty provided in the 5th and 6th editions).

Modifies the criminal penalty provisions set for under the new Article. Eliminates the proposed Class 2 misdemeanor established for selling hemp, hemp products, or hemp extracts to a person less than 18 years old. Now, 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 (identical to the criminal penalty provided in the 5th edition).

Makes technical changes to the provisions concerning the NC Hemp Program Fund.

Amends GS 90-87, GS 90-94, and enacts GS 90-94.5, effective July 1, 2021, similarly to the provisions set forth in Section 2 of the act, which sunset on July 1, 2021, with the following changes. Amends GS 90-87, now defining marijuana to exclude hemp, hemp products, hemp extracts, and smokable hemp as defined in the new Article (identical to the definition set forth in the 5th edition). Makes changes to new GS 90-94.5 to refer to the Department of Agriculture and Consumer Services (DACS) rather than the Hemp Commission, and to make statutory cross-references to the new Article.

Makes further technical changes.

Amends the proposed definition of cannabinoid-related compounds set forth in GS 106-121 to no longer exclude smokable hemp. Makes conforming and technical changes.

Reinstates the proposed civil and criminal penalties of Article 50E in proposed GS 106-568.56(a)(5) and GS 106-568.57(d), as set forth in the 5th edition, identical to those added to new Article 50F. Permits the Commissioner to access a civil penalty of up to $2,500 for knowingly or intentionally manufacturing, delivering, selling, or possessing 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. 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. Applies to offenses occurring on or after December 1, 2020.

Reinstates the directives regarding the Environmental Management Commission's implementation of 15A NCAC 02D .1806 (Control and prohibition of odorous emissions), as the provisions appeared in the 5th edition. Requires the EMC to classify facilities that store products that are grown, produced, or generated on one or more agricultural operations and are renewable resources under specified state law, as agricultural operations that are exempt from the identified rule's requirements. 

Modifies the proposed changes to GS 153A-340 to no longer explicitly require properties used for shooting sports to comply local zoning and development ordinances. Makes conforming changes.

Eliminates the proposed changes to the sunset provision of the NC Food Innovation Lab Committee set forth in SL 2017-57 (previously, amended to sunset January 1, 2020, rather than January 1, 2025 under existing law).

Modifies proposed GS 139-8.2 to no longer exclude from confidentiality complaints to a soil and water conservation district resulting in a determination that a violation of the law has occurred.

Reinstates the following provisions as they appeared in the 5th and 6th editions.

Amends GS 143-215.71 and 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.

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.

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.

Maintains the act's severability clause and effective date provisions.