Summary of North Carolina House Bill: Regulation of Hemp-derived Cannabinoid Products and Kratom

What is this bill about?

This bill sets rules to regulate the sale and distribution of products made from hemp-derived cannabinoids (like CBD products) and creates a system to regulate kratom products, which come from a plant often used for wellness.

It aims to ensure these products are safe, labeled correctly, and only sold to adults 21 years or older, while establishing licenses and inspections to enforce the rules.

Part 1: Rules for Hemp-Derived Cannabinoid Products

• Age Restrictions: You must be 21 or older to buy, sell, or distribute hemp-derived cannabinoid products.
• Licensing: Businesses that make, sell, or distribute these products must get a license and follow set standards.
• Testing: Every batch of these products must be tested by independent labs to check for cannabinoids, heavy metals, microbes, pesticides, and other harmful substances.
• Labeling & Packaging: Products must have child-resistant packaging, ingredient lists, warnings (for example, about pregnancy and operating machinery), cannabinoid amounts, expiration dates, and a scannable code to access batch test info.
• Advertising Limits: No marketing aimed at people under 21 allowed, meaning no cartoon characters, superheroes, or similar imagery on products or ads.
• Limits on Edibles: Edible products can't have more than 75 mg of cannabinoids per serving and can't be shaped like animals or cartoons.

Penalties: Violations like selling to minors or having too much THC (the part of cannabis that causes a high) can lead to misdemeanors, fines, license suspensions, or revocations.

Part 2: Changes to Existing Laws

The bill makes some updates to existing North Carolina laws regarding alcohol and hemp extract to align with these new rules, including adjustments to how hemp extract for medical uses (like epilepsy treatment) is handled.

Part 3: Funding and Enforcement

• The state is allocating $2 million to hire 20 special agents to help enforce these new rules.
• An additional $500,000 is provided for other costs related to enforcement.
• The Alcohol Law Enforcement (ALE) Division will conduct inspections and submit yearly reports on enforcement activities starting in 2025.

Part 4: Regulation of Kratom

Kratom is a herbal product made from the leaves of the Mitragyna speciosa plant.

• Businesses that sell or prepare kratom in North Carolina must register with the Department of Agriculture.
• All kratom products they sell must also be registered.
• If a business violates the rules, they must fix the issues within a set time or risk losing their registration and ability to sell kratom.
• Businesses must report any adverse health events related to their kratom products to the Department within 30 days.
• Fake or falsely certified kratom products are prohibited and subject to penalties.

Part 5: Other Details

• The state agencies involved will update rules to match these new regulations.
• Ongoing prosecutions for offenses committed before this bill’s effective date will continue under previous laws.
• If part of the law is found invalid, the rest will still stand.
• The bill mostly takes effect on July 1, 2023, with some parts effective October 1, 2023.