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Bill explainer · Industry warning

HB 328 would function as elimination, not regulation.

The adopted conference proposal uses a 0.4 milligram total-THC limit per container. For many products now sold by lawful North Carolina hemp businesses, that is effectively a market-ending standard.

ADOPTED CONFERENCE REPORTRead the language. Then judge the impact.

The Senate adopted the conference report 37–6 on July 2, 2026. Below, every major hemp provision is tied to its location in that report.

Verified August 31 session status

The General Assembly reconvenes at noon on August 31. Resolution 2026-6 allows qualifying conference reports to be considered, and HB 328 qualifies because both chambers appointed conferees before August 6. No HB 328 vote is currently shown on the public calendar. If the House adopts the report, HB 328 would complete legislative approval and proceed through enrollment to the governor—it would not automatically become law from the House vote alone.

THE LANGUAGE THAT CHANGES THE MARKET

0.4milligram
total THC
per container

The bill measures the entire innermost retail package. For perspective, a package containing ten 5 mg servings contains 50 mg—125 times the proposed ceiling.

Open conference report page 2 ↗

Highlighted policy language

Gold highlighting identifies the operative language or number. Red cards show provisions with potentially market-ending or criminal-law consequences. “Meaning” explains the text; “Business impact” is NC Hemp Facts’ analysis.

01
Market-defining provision

0.4 mg total THC per container

Section 1(b) · Conference report page 2, lines 21–26

“more than four-tenths of one milligram (0.4 mg) of total tetrahydrocannabinol per container”
PLAIN-ENGLISH MEANING

A finished ingestible or inhalable product becomes prohibited when the entire innermost retail container exceeds 0.4 mg total THC. This is a package limit, not a per-serving limit.

BUSINESS & CONSUMER IMPACT

Most currently marketed intoxicating hemp gummies, beverages, tinctures, flower, and inhalable products would exceed this ceiling. This is the central reason the industry describes HB 328 as elimination.

Verify in the official conference report ↗
02
Expanded calculation

A new total-THC formula

Section 1(b) · Conference report page 2, lines 3–15

PLAIN-ENGLISH MEANING

The hemp definition would count delta-9 THC, 87.7% of THCA, and other THC forms including delta-7, delta-8, and delta-10 toward the 0.3% dry-weight limit.

BUSINESS & CONSUMER IMPACT

Products and plant material that comply under a delta-9-only measurement could fail under the broader total-THC calculation.

Verify in the official conference report ↗
03
Product prohibition

Converted cannabinoids are excluded

Section 1(b) · Conference report page 2, lines 21–26

“any synthetic or chemically converted cannabinoid”
PLAIN-ENGLISH MEANING

A finished consumable containing a synthetic or chemically converted cannabinoid would fall within the prohibited-product definition regardless of its milligram amount.

BUSINESS & CONSUMER IMPACT

The provision reaches product categories made through cannabinoid conversion, including products commonly sold in the current hemp marketplace.

Verify in the official conference report ↗
04
Controlled-substance treatment

Prohibited products enter Schedule VI

Section 1(c) · Conference report pages 2–3, lines 28–50

PLAIN-ENGLISH MEANING

The proposal adds a prohibited finished hemp-derived consumable product to North Carolina’s Schedule VI controlled-substances list.

BUSINESS & CONSUMER IMPACT

After the effective date, prohibited products are not simply noncompliant retail inventory; they are treated within the State Controlled Substances Act.

Verify in the official conference report ↗
05
Age policy

Sales and possession restricted to 21+

Section 2(a) · Conference report pages 3–4

PLAIN-ENGLISH MEANING

Selling or delivering a hemp-derived consumable to a person under 21 would be unlawful. Possession by a person under 21 would also be unlawful and violations are designated a Class 2 misdemeanor.

BUSINESS & CONSUMER IMPACT

NC Hemp Facts supports keeping intoxicating products away from minors. The concern is that HB 328 combines this broadly supported protection with a separate near-zero product ceiling.

Verify in the official conference report ↗
06
Financial exposure

Penalties can reach $50,000

Section 2(a) · Conference report page 4, lines 11–37

“Each violation of this section constitutes a separate violation.”
PLAIN-ENGLISH MEANING

General underage-sale penalties escalate from $2,500 to $25,000. Sale or delivery of a prohibited finished product carries higher penalties: $10,000, $25,000, then $50,000.

BUSINESS & CONSUMER IMPACT

Because each violation is separate and retailers are responsible for actions by staff and agents, exposure could compound quickly.

Verify in the official conference report ↗
07
Two effective dates

Age rules first; product ceiling later

Sections 1(d) and 2(b) · Conference report pages 3–4

PLAIN-ENGLISH MEANING

The age-sale and possession provisions are dated July 15, 2026. The new hemp definition, product ceiling, and Schedule VI changes are dated November 12, 2026.

BUSINESS & CONSUMER IMPACT

Businesses need to distinguish the immediate age-policy timeline from the later market-wide product restrictions.

Verify in the official conference report ↗

Penalty table

ViolationFirstSecondThirdFourth+
Underage sale or delivery$2,500$7,500$15,000$25,000
Sale or delivery of a prohibited finished product$10,000$25,000$50,000$50,000

Source: Section 2(a), proposed G.S. 14-313.1(d), conference report page 4. Each violation is treated separately.

What happens when

Senate adopts conference report

Official roll call: 37 ayes, 6 noes.

Referred to House Rules

This remains the latest recorded action; the House has not adopted the report.

General Assembly reconvenes

HB 328 is eligible for consideration, but no vote is currently posted.

Product ceiling dated to begin if enacted

Total-THC definition, 0.4 mg container limit, converted-cannabinoid rule, and Schedule VI treatment.

PRIMARY SOURCES

Do not take our word for it.

Open the adopted conference report and compare this analysis with the actual legislative text.

The alternative

SB 265 uses age restrictions, licensing, batch testing, packaging, labeling, and enforcement without the 0.4 mg-per-container ceiling.

Compare the SB 265 approach →

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