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NC Legislative Update: Hemp Legislation Passes House; Headed Back to Senate

On August 21, the North Carolina House of Representatives voted, by a narrow margin, to advance Senate Bill 315 – North Carolina Farm Act of 2019

While not the only issue addressed, hemp features prominently in this particular Farm Act.  The version of this Act as approved by the House is different from the Senate version.  Among other things, it features a ban on smokable hemp which mirrors the ban featured by the Senate version.  But the Senate version called for a ban in December of 2020, while the House version accelerates the effective date to May of 2020.  It now travels back to the Senate for consideration, and it remains to be seen what will happen next.

A Tale of Two Chambers

The bill has seen significantly different treatment in the two sides of the General Assembly.  The Senate process was relatively typical and straightforward.  While this version also included a ban on smokable hemp, that ban was pushed far out in order to give lawmakers, law enforcement, and industry participants the time they needed to work together to address issues of field testing, probable cause, and the like.  This delayed ban was also designed to protect our State's hemp growers from losing the ability to sell their current crop.

Things have been more complicated in the House, where the industry and law enforcement's disagreements over the impact of the legislation on criminal enforcement have come to a head and embroiled lawmakers.  The bill has labored there in committees for several weeks and, despite the pleas of the sponsoring Senators, undergone significant change.  The current version of the bill, passed by the House, with all amendments engrossed is available here.  For comparison, the version originally passed by the Senate is available here.

What Comes Next?

Due to significant differences between the House and Senate versions, the Senate now has the opportunity to vote to concur or not with the House's changes.  If the Senate votes to concur, the House version will be sent to the Governor, and upon receipt of his signature, would become law.  If the Senate votes not to concur with the House version, conferees from both chambers would be appointed to negotiate a final version of the bill.  The Senate could also elect not to hold a concurrence vote at all, or could refuse to appoint conferees, which would prevent the bill's passage altogether.  That would delay the process until the next legislative session, which we expect will begin in May of 2020.

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About this Author

Whitney Campbell Christensen, Ward Smith Law Firm, business liability, internet privacy attorney
Government Relations Attorney

Whitney is a government relations attorney who represents clients before the North Carolina General Assembly, where for seven legislative sessions she has monitored, evaluated, drafted, supported, amended and opposed legislation in accordance with client needs. She has experience advocating on behalf of large technology companies, professional associations, manufacturers, restaurants and lodging properties, environmental mitigation providers, military and education nonprofits, and local governments. Whitney has successfully secured state budget provisions and has had...

919-277-9113
Tyler Russell, Bankruptcy Attorney, Creditors Rights, Raleigh, North Carolina, Ward and Smith Law Firm
Business and Creditor's Rights Attorney

Tyler's creditors' rights practice encompasses bankruptcy, collections, and lender liability issues.  He concentrates his practice on the representation of creditors in bankruptcy cases and state court litigation, including workouts, reorganizations, Uniform Commercial Code security agreement enforcement, collections cases, and other contested matters.  Tyler has represented national and community lenders, trade creditors, equipment manufacturers, agricultural companies, community associations, contractors, and leasing companies in various reorganization and litigation proceedings. His practice covers all three Federal Districts and all 100 counties within North Carolina.

In his business practice, Tyler advises companies on a broad range of business matters, from drafting and negotiating corporate agreements and documents to managing all aspects of mergers, acquisitions, and other transactions for a variety of companies.  He frequently represents privately held companies, and assists them in all aspects of their business, from corporate governance and transactions to business structuring, development, and expansion opportunities.

919-277-9122
Allen N. Trask III, Litigation Attorney, Ward Smith, Wilmington, North Carolina, business, civil, commercial litigation
Litigation Attorney

Allen focuses his practice on assisting those who own, manage, and invest in real estate and common interest communities.  He regularly works with real estate developers and the residential and commercial community associations that they create to handle all manner of issues, including the preparation, amendment, interpretation, and enforcement of restrictive covenants and governing corporate documents, declarant control transition and disputes, community management, insurance claims and disputes, and collections.  He also frequently represents Real Estate Investment...

910-794-4804