North Carolina's Protect Our Communities Act Aims to Regulate Hemp Consumable Products

The North Carolina General Assembly is taking significant steps toward regulating hemp-derived consumable products through a proposed bill titled the Protect Our Communities Act. If passed, this legislation will establish a robust framework governing the sale, distribution, and production of hemp consumables statewide. For business owners, consumers, legal professionals, and residents alike, understanding the impact of these changes is crucial. 

This blog breaks down the proposed regulations, highlighting what hemp businesses and consumers need to know. 

What Are Hemp-Derived Consumable Products? 

The bill defines hemp-derived consumable products as final-form hemp products intended for human ingestion or inhalation. These include products such as tinctures, edibles, capsules, vaping oils, and inhalable hemp flower. Importantly, the definition limits delta-9 THC content to no more than 0.3% on a dry weight basis, keeping these products federally compliant under the 2018 Farm Bill. However, it’s worth noting that the regulation excludes certain items like topical applications and hemp seeds or seed-derived ingredients that the FDA has deemed generally safe for consumption. 

By targeting consumable products specifically, the proposed legislation ensures a tighter regulatory grip on a fast-growing but loosely monitored market. 

Key Changes Proposed in the Bill 

The Protect Our Communities Act introduces sweeping changes that could reshape North Carolina's hemp market. Here are the core elements of the bill to be aware of. 

1. Age Restrictions 

• No Sales Under 21: Selling hemp-derived consumable products to individuals under the age of 21 will be strictly prohibited. 

• Online Sales Requirements: Online vendors will need to implement strict age verification systems and require an adult signature (21 or older) upon delivery. 

2. Sampling Restrictions 

The bill bans the distribution of free samples on public streets, sidewalks, or parks. This restriction aims to prevent unsolicited access to hemp products, thereby limiting exposure, especially to minors. 

3. Mandatory Licensing 

Businesses engaged in selling, distributing, producing, or manufacturing hemp-derived consumable products must obtain a license to operate legally within the state. This licensing requirement places accountability squarely on industry stakeholders, promoting compliance and traceability. 

4. THC Limits 

All hemp-derived consumable products sold within North Carolina must adhere to the federal limit of 0.3% delta-9 THC on a dry weight basis. 

5. Child-Resistant Packaging 

To prioritize safety, the bill mandates that all hemp consumable products be sold in child-resistant, tamper-evident “exit packaging.” 

6. Testing Standards 

Hemp flower and consumable products containing hemp flower must include a certificate of analysis conducted within the past six months. This certificate must confirm that the product maintains compliance with the 0.3% THC limit (adjusted for a margin of measurement uncertainty). 

7. Display Restrictions 

Retailers are prohibited from displaying hemp-derived consumable products in areas accessible to customers without staff assistance unless the establishment is restricted to customers 21 and older. 

• Exception: This restriction does not apply to hemp-infused beverages, which may be displayed openly. 

8. Producer Limitations 

Producers are barred from selling processed hemp intended for consumable products to unlicensed manufacturers. This provision excludes home-based manufacturers, emphasizing a focus on licensed and regulated production chains. 

Penalties for Non-Compliance 

The Protect Our Communities Act introduces clear ramifications for those failing to comply with the new regulations. 

Civil Penalties 

Businesses found in violation could face fines ranging from $500 to $2,000 per infraction. Repeated violations may result in the suspension or permanent revocation of their operating license. 

Criminal Penalties 

Selling hemp-derived consumable products without a valid license could lead to misdemeanor charges. Repeat offenders risk facing felony charges, underscoring the seriousness of compliance. 

Underage Possession Restrictions 

The legislation makes it unlawful for anyone under 21 to possess, purchase, or attempt to purchase hemp-derived consumable products. This provision mirrors similar measures taken with alcohol and tobacco. 

What Does This Mean for Hemp Businesses and Consumers? 

The Protect Our Communities Act establishes a comprehensive regulatory framework that seeks to balance industry growth with consumer protection and community safety. 

• For Businesses: These regulations will demand stricter compliance, necessitating updates to operational processes, packaging, and licensing protocols. It also challenges manufacturers and sellers to maintain rigorous quality control and uphold transparency in their operations. 

• For Consumers: While the bill’s restrictions may initially feel cumbersome, they ultimately aim to elevate safety standards and ensure that the hemp products available on the market are reliable, tested, and appropriately packaged. 

Stay Ahead of the Changes 

Whether you're a hemp business owner, consumer, or legal professional, staying informed and prepared for these regulatory changes will be critical. Non-compliance could result in significant fines, repeated violations, or even criminal charges. Take proactive steps now by reviewing your operations, ensuring proper licensing, and adhering to packaging and testing standards. 

If you're a business owner looking to understand how this bill may impact your operations, consult with legal professionals or industry experts specializing in hemp regulation. Spread awareness within your network so that our hemp community remains informed and equipped to adapt to these upcoming changes.