Bill regulating hemp consumables on school grounds returns to NC House

On June 19, NC House Bill 328, “Regulate Hemp-Derived Consumables,” formerly “Ban Delta-8 & Delta-9 on School Grounds,” passed the Senate in a 35-7 vote, moving it back to the House, following a series of committee substitutes.  

Since this bill’s introduction in March, it has been altered several times in the House and Senate and now integrates a more comprehensive approach in regulating hemp-derived consumable products, hence the name change.  

Consistent with the first filing of the bill, the sale of hemp-derived consumables to those under 21 would be prohibited. Furthermore, the possession of these substances on school grounds would be made illegal, adding natural and synthetic hemp consumables along with vapor products to the current statutes on tobacco.

The bill would require school districts to adopt policies to enforce these regulations as well as posting written signage indicating the enforceable ban.  

Rep. Carla Cunningham, D-Mecklenburg, said the bills is about protecting children and schools: “What we’re trying to do here is to put something in place that will be unified — that all school boards and school districts would have available today as a tool.” 

Kratom, another similar consumable to those derived from hemp, is a plant native to Asia that produces psychoactive effects and is currently not regulated by state law. This bill would add Kratom to the Controlled Substances Act, as lawmakers believe it should be regulated in the same manner as THC, tobacco, and other addictive or psychoactive substances.  

Another new addition to this bill is that it would establish a licensing regime to any party looking to sell, distribute, or manufacture hemp-derived consumables.  

The current version of this bill also institutes several new prohibitions, including against the following: 

• Distributing samples of a hemp-derived consumable product in or on a public street, sidewalk, or park

• Engaging in the business of selling hemp-derived consumable products without a valid license

• Selling a hemp-derived consumable product that has a concentration of more than 0.3% on a dry weight basis total combined of THC

If an individual is found guilty of these or any of the other proposed regulations, the bill lays out a scale of civil and criminal charges for each respective offense.  

• First violation: Alcohol Law Enforcement Division (ALE) may impose a penalty up to $500
• Second violation within 3 years of the first violation: ALE may impose a penalty up to $750
• Third violation within 3 years of the first violation: ALE shall impose a penalty up to $1,000 and suspend the seller’s license for one year
• Fourth or subsequent violation within 3 years of the first violation: ALE shall impose a penalty up to $2,000 and revoke the seller’s license

Along with the new provisions and punishments, this bill also intends to make the distribution and manufacture of hemp-derived consumables safer through testing and packaging regulation.  

The testing of these products is to ensure that distributors and manufacturers adhere to percentage guidelines established in the bill. The guidelines limit the amount of delta-9 tetrahydrocannabinol (THC) in consumables to 0.3% and are included in the bill to ensure the safety of these products.  

House Bill 328 is currently on the docket for the House Committee on Rules, Calendar, and Operations. 

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