HB 328 Stalls in the North Carolina House… For Now

North Carolina’s hemp industry appears to have avoided disaster, at least for the time being.

House Bill 328 was widely expected to receive a vote in the North Carolina House on August 4. It did not appear on the voting calendar, and no vote occurred. The bill remains assigned to the House Rules Committee, meaning that it is not technically dead, but it is stalled unless House leadership decides to revive it during a later session.

This is good news. 

As I explained in my prior article on this bill, the conference report adopted by the Senate was not a serious hemp-regulation bill. It was a hemp ban. Among other things, it would impose a “total THC” standard and classify finished hemp products exceeding an extraordinarily low 0.4-milligram-per-container threshold as controlled substances. The practical effect would be to eliminate almost all of North Carolina’s existing hemp-derived cannabinoid market, including many products that are nonintoxicating or only mildly intoxicating.

Regulation Was Available

The most frustrating aspect of HB 328 is that North Carolina did not have to choose between the false premise of either protecting children or preserving the hemp industry.

An earlier version of the legislation, developed with substantial industry input (including myself), created a genuine regulatory structure. It included:

• A minimum purchase age of 21;
• Licensing for manufacturers, distributors, and retailers;
• Independent laboratory testing;
• Packaging and labeling standards;
• Online age verification;
• Restrictions on products designed to appeal to children;
• Product tracking and inspection authority; and
• Meaningful civil and criminal penalties for violations.

That version addressed the legitimate concerns surrounding an underregulated market while preserving lawful adult access and responsible North Carolina businesses. The Senate ultimately replaced that approach with a conference report that would destroy most of the market it purported to regulate.

Law Enforcement PUSHED Prohibition

North Carolina law-enforcement and prosecutorial organizations came out forcefully in favor of the Senate’s version. Their public argument relied heavily on the familiar claim that broad prohibition was necessary to protect children.

That framing was misleading at best. The hemp industry has consistently supported strict age restrictions. As one North Carolina business owner stated during the debate, the industry was “100% on the same page” about preventing sales to minors. Industry advocates supported age verification, licensing, testing, packaging rules, and enforcement against irresponsible sellers. What they opposed was using children as the justification for eliminating lawful products sold to adults.

Protecting children requires guardrails and enforcement. It does not require shutting down a multi-billion dollar industry of responsible manufacturers, breweries, retailers, farmers, and other businesses, or pushing adult consumers into an illicit market.

Kudos to Governor Josh Stein who recognized this distinction. Although he supports age restrictions and stronger consumer protections, he publicly opposed HB 328’s near-total product ban and favors regulating the market rather than destroying it.

The Industry Made the Difference

As it has consistently done at existential moments like today, North Carolina’s hemp industry responded forcefully. Business owners, employees, consumers, advocates, and other stakeholders contacted their representatives, attended rallies, traveled to Raleigh, and filled the Legislative Building. House members reported receiving an overwhelming volume of constituent communications regarding the bill.

Thank you to everyone who called, emailed, visited legislators, attended events, shared information, and explained how HB 328 would affect North Carolina businesses, workers, consumers, and families. The bill’s failure to receive a vote demonstrates that organized, informed advocacy can change the course of legislation.

This Is a Reprieve, Not the End

HB 328 remains in committee and could theoretically return. North Carolina still needs meaningful hemp legislation. The absence of statewide age restrictions and uniform product standards is neither desirable nor sustainable.

The path forward is clear: return to the regulatory framework the industry helped develop. Establish age limits. License market participants. Require testing, responsible packaging, accurate labels, and meaningful enforcement. Remove dangerous or deceptively marketed products without criminalizing the entire lawful market. The Three Pillars approach serves the hemp market, its adult consumers, and legitimate law enforcement and safety concerns. 

HB 328 did not pass. The industry came out. Regulation remains possible. Prohibition is not inevitable.

August 4, 2026