Bill Summary for S 521 (2023-2024)

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Summary date: 

Apr 3 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 521 (Public) Filed Monday, April 3, 2023
Intro. by Johnson, Lazzara.

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Bill summary

Amends GS 106-121 (definitions provisions of State food, drugs, and cosmetics statutes) to define cannabinoid-related compounds, hemp, and hemp products. Makes organizational changes.

Amends GS 106-139 (pertaining to regulations by the Board of Agriculture [Board]) to require the Board to adopt rules to establish a voluntary certification program for good manufacturing practices in manufacturing, packaging, or labeling operations for cannabinoid-related compounds derived from hemp. Sets forth labeling requirements for the Board’s voluntary certification rules as follows: (1) the label of products containing cannabinoid-related compounds must indicate both the total marketed cannabinoid content per product unit and, for products intended for human consumption, the marketed cannabinoid content per serving size recommended on the product label and (2) all products containing cannabinoid-related compounds must include on the label a machine-readable code that, when scanned by a cell phone or other electronic device, provides access via the internet to a certificate of analysis issued by an independent accredited laboratory certified under ISO Standard 12 17025 that meets all of the following requirements: (i) the certification is lot-specific, (ii) the certification provides a profile of total cannabinoid potency content contained in the product, and (iii) the certification includes analysis of residual solvents, heavy metals, pesticides, mycotoxins, and microbials contained in the product. Prohibits the manufacture, sale, delivery, holding, or offering for sale of any cannabinoid-related compound falsely certified as compliant with the certification rules adopted by the Board and makes it subject to the provisions of the Article relating to injunctions and restraining orders and detention of an adulterated and misbranded product. Provides for an application form and requires the Board to develop a schedule of license fees. Requires that fees collected must be used to cover all reasonable costs of administering the voluntary licensing program, including staffing costs. Effective January 1, 2024.

Enacts GS 106-139.2 (specifying that hemp is not an adulterant), providing that hemp products are not considered to be adulterated or misbranded based solely on the inclusion of hemp. Subject to any rules and regulations developed by the Board, bars the production, marketing, sale, or distribution of hemp or hemp products from being restricted or prohibited based solely on the inclusion of hemp. Amends GS 18B-500(b) to authorize alcohol law-enforcement agents to arrest and take other investigatory and enforcement actions for any criminal offense occurring, encountered, or otherwise discovered on the premises of, or elsewhere when the conduct relates to a location engaged in or marketing itself to be engaged in the sale or distribution of hemp, hemp products, or cannabinoid compounds as those terms are defined in GS 106-121, in addition to other authorized locations already listed in GS 18B-500(b). Effective October 1, 2023, and applies to offenses committed on or after that date.

Amends GS 90-87 (definitions provisions of the NC Controlled Substances Act) and GS 90-94(b)(2) (Schedule IV controlled substances) to account for new definition of hemp set forth in GS 106-121.

Requires the Board to adopt temporary rules to implement the act no later than January 1, 2024. Specifies that the temporary rules must remain in effect until permanent rules that replace the temporary rules become effective. Requires the Board to adopt permanent rules no later than January 1, 2025.