Bill Summary for S 315 (2019-2020)

Summary date: 

Oct 24 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
Senate Bill 315 (Public) Filed Wednesday, March 20, 2019
AN ACT TO MAKE VARIOUS CHANGES TO THE AGRICULTURAL LAWS OF THE STATE.
Intro. by B. Jackson, Sanderson, Johnson.

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Bill summary

Conference report makes the following changes to the 10th edition.

Sections 1 through 7

Reinstates the qualifications of licensed cultivators and handlers of hemp set forth in GS 106-568.53A under Article 50E as they appeared in the 7th edition to include extending licensee rights and privileges to otherwise qualifying spouses of licensees, and making the license transferable to otherwise qualified family members of the licensee upon death or incapacity.

Amends proposed GS 106-568.55A, concerning bond requirements for hemp handlers, to reinstate the exemption for handlers who process only hemp grown by the handler as the exemption appeared in the 7th edition.

Modifies the proposed changes to GS 90-87, concerning the defined terms applicable to the NC Controlled Substances Act, Article 5, GS Chapter 90. No longer enacts definitions for the terms hemp, hemp product, or smokable hemp. Amends the proposed changes to the defined term marijuana to exclude hemp, hemp products, and smokable hemp from the term, as defined in GS 106-568.51, as amended, when the hemp is produced and used in compliance with the Article and rules adopted by the NC Hemp Commission (Commission) (similar to the changes proposed in the 8th edition, though the 8th edition also excluded hemp extracts).

Amends the proposed changes to GS 90-94 to also exclude smokable hemp from the Schedule VI controlled substance, tetrahydrocannabinols (previously, excluded hemp and hemp products only, which were defined to exclude smokable hemp).

Changes the effective date of the proposed changes to GS 90-87 and GS 90-94, now making the provisions effective December 1, 2019, rather than May 1, 2020.

Changes the effective date of the proposed changes to GS 106-568.57(d), as enacted, which removes the sale of smokable hemp to minors from the Class 2 misdemeanor defined therein, now making the change effective June 1, 2020, rather than May 1, 2020.

Further amends GS 105-113.106 to include smokable hemp (as defined in the specified statute) in the definition of hemp, as the term applies to the act's proposed tax provisions, which exclude lawfully possessed hemp from unauthorized substance taxes levied under Article 2D. Makes these changes to both the statute, as amended, which becomes effective July 1, 2019, as amended, and to the statute, as amended, which becomes effective July 1, 2021.

Amends the proposed changes to SL 2015-299, as amended. Now provides that Section 2 of that act, which amends the definition of marijuana under the NC Controlled Substances Act, to exclude industrial hemp, expires December 1, 2019, rather than May 1, 2020.

Sections 8 through 11

Amends proposed GS 106-568.63 to reinstate the qualifications for spouses and family members of licensed cultivators and handlers of hemp under new Article 50F as they appeared in the 7th edition (identical to those reinstated to Article 50E, GS 106-568.53A).

Amends proposed GS 106-568.64 to reinstate the exemption for handlers who process only hemp grown by the handler as the exemption appeared in the 7th edition (identical to that reinstated to Article 50E, GS 106-568.55A).

Adds to the civil and criminal penalties set forth in new Article 50F. Now allows the Commissioner of Agriculture (Commissioner) to assess a civil penalty of up to $2,500 per violation to 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 or sale or delivery to either an individual who possesses a valid hemp license from the Department of Agriculture (Department) or a person outside the state who is allowed to receive it under the laws of that jurisdiction (this civil penalty was not included in the 10th edition; earlier editions contained similar provisions but did not also explicitly exclude sales or deliveries of smokable hemp to other licensees from the civil penalty). Makes it a Class 1 misdemeanor to knowingly or intentionally manufacture, deliver, sell, or possess smokable hemp, except for hemp plants or parts of hemp grown or handled by a licensee for processing or manufacturing into a legal hemp product or for sale or delivery to either an individual who possesses a valid hemp license from the Department or a person outside the state who is allowed to receive it under the laws of that jurisdiction (this criminal penalty was not included in the 10th edition; earlier editions contained similar provisions but did not also explicitly exclude sales or deliveries of smokable hemp to other licensees from the criminal offense).

Section 12

Adds to new GS 106-139(f), which mandates the Board of Agriculture (Board) is to adopt current good manufacturing practices in operations for cannabinoid-related compounds derived from hemp. Specifies required content of the rules pertaining to labeling of cannabinoid-related compounds, including requirements for product labels to indicate total cannabinoid content and active cannabinoid content doses recommended, and a barcode that when scanned provides access to a certificate of analysis (makes these changes to the statute, as amended, which becomes effective January 1, 2020, and expires July 1, 2021, and the statute, as amended, which becomes effective July 1, 2021). Makes organizational changes.

Now requires the Board to adopt temporary rules to implement Section 12 of the act by April 1, 2020, rather than November 1, 2019.

Section 14

Adds civil and criminal penalties to Article 50E, GS Chapter 106, as amended, identical to those enacted to new Article 50F, GS Chapter 106. Makes the new penalties effective June 1, 2020, and applicable to violations or offenses occurring on or after that date (these provisions were not included in the 10th edition; earlier editions contained similar provisions, though they did not explicitly exclude sales or deliveries of smokable hemp to other licensees from the penalties, and also provided different effective dates).

Changes the effective date of the proposed changes to GS 106-568.51, which explicitly excludes smokable hemp from the term hemp product as the term is used in Article 50E, to now make the changes effective June 1, 2020 (previously, effective May 1, 2020).

Section 20

Amends the proposed changes to GS 153A-340 to no longer include compliance with local zoning and development ordinances in the qualifications of shooting sports, which are proposed to be included in the definition of agritourism as the term relates to determining whether buildings or structures are used for bona fide farm purposes. No longer requires a majority of the county board of commissioners to determine a property's compliance with local zoning and development ordinances; however, requires a determination that the property is in compliance with guidelines adopted by the Wildlife Resources Commission (was, guidelines established by the Wildlife Resources Commission).

Adds a savings clause to clarify that the proposed changes to GS 99E-30 and GS 153A-340, both of which modify agritourism definitions, do not affect any existing agreement or settlement with a local government, any permit or zoning decision previously issued by a local government, or any pending or ongoing litigation. 

Makes further technical and conforming changes.

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