On June 12, the North Carolina House Judiciary Committee considered House Bill 563, which would implement a new law banning the sale of hemp-derived consumer products to anyone under the age of 17 (unless with parental or guardian consent).
One of the bill's lead sponsors, Rep. Jeff McNealy, told the committee how the bill has evolved since it was first introduced. “When I started out innocently, I just wanted to make sure that a 10-year-old couldn't go into a tobacco store and buy these products,” McNealy said. Now, the bill is 17 pages long and includes many provisions to regulate hemp-derived products for young people. “Research suggests that about three-quarters of young people get to marijuana through these types of products found in tobacco stores and convenience stores,” he added.
according to NC NewslineIf the bill passes, manufacturers and distributors will have to apply for state licenses by July 1 to start selling them. The bill also requires laboratory testing. It also tightens regulations, such as banning food products shaped like animals or cartoon characters. It also requires manufacturers to create child-resistant packaging and packaging that lists information about the ingredients and allergens they contain. It also requires warning labels to inform consumers that they should not drive or operate heavy machinery while consuming them.
Elizabeth Robinson, senior director of the North Carolina Retailers Association, spoke in support on behalf of the association. “We appreciate any framework in place to allow legitimate businesses to continue operating responsibly while also regulating the bad actors that, unfortunately, are putting some of these products into the hands of young people,” Robinson said.
Recently, the bill was amended on June 12 to require both public and charter schools to create policies banning tobacco and hemp-derived consumer products on school grounds and related events.
The bill was developed in part as a response to the growing number of young people turning to psychoactive cannabis products. In December 2023, seven middle school students were hospitalized after eating cannabis-laced Rice Krispies. Two other students were arrested for supplying THC-laced edibles and psilocybin mushrooms, but it was later determined that this was a “planned” act by a group of kids.
During a recent hearing, McNeely responded to questions from other lawmakers, including Rep. Marcia Morey. “Are the penalties consistent with the penalties for small amounts of marijuana?” Morey asked.
“No it's not,” McNeely responded. “I think of it like non-alcoholic beer. If it's made correctly, there's no crime or wrongdoing. It's when it's not made correctly that it becomes a problem.”
McNeely wants the North Carolina Department of Agriculture to take responsibility for proper testing. “USDA says they don't have the capacity, the time or the personnel to do the testing,” McNeely says. “So the only way I know to get this under control with less expense was to do some hard enforcement behind the scenes and hope that the gamers will fix everything that's not doing it right by the rules.”
Rep. David Willis also questioned McNeely about how the testing process would work and who would pay for it. Currently, manufacturers of cannabis products test their products before they are distributed. After that, it becomes the responsibility of the North Carolina Department of Alcohol Law Enforcement (ALE).
McNeely added that the bill would provide $500,000 to ALE to cover the costs of testing. Willis also asked if there was a way to have the cannabis industry cover that cost instead of taxpayers, and McNeely acknowledged that was a promising outcome. “Our hope is that once this bill goes into effect, the industry will finally be able to cover the costs of these drugs and samples,” McNeely explained. “But there was some seed funding needed to get the bill into effect.”
ALE is scheduled to present its first annual report to the General Assembly starting in January 2025, which will also include an account of its “enforcement efforts.” NC Newsline.
If HB-563 passes, it would go into effect in July 2024. “We know there are things in the pipeline. We're not asking you to rip everything off the shelves,” McNeely said. “We're giving them time to do that.” The bill will next head to the House Appropriations Committee.
While North Carolina lawmakers are working to protect children from hemp-based consumer products, the Eastern Band of Cherokee Indians (EBCI) recently opened the state's first medical marijuana dispensary in April. While medical marijuana is not currently legal in North Carolina, EBCI has allowed medical marijuana cardholders to purchase medical marijuana on tribal lands.
