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SB 535

defining residential breeder and imported animal for the purposes of animal transfers and removing references to commercial kennels.

2026 Regular Session Introduced by Daryl Abbas and 11 co-sponsors

NC SB 535 regulates hemp-derived beverages under ABC as a distinct category, sets labeling and testing standards, and bans unapproved manufacture or sale, effective July 1, 2025.

Vetoed by Governor 07/02/2026
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WeVote Research Nonpartisan
Bill Summary · SB 535

SB 535 — Regulate Hemp‑Derived Beverages (Summary)

Status & effective date
- Bill to regulate nonalcoholic hemp‑derived beverages.
- Enacted text effective July 1, 2025 and applies to hemp‑derived beverages manufactured, sold, transported, imported, delivered, furnished, purchased, consumed, or possessed on or after that date.
- Directs the NC Alcoholic Beverage Control (ABC) Commission to adopt or amend rules as needed (may use G.S. 150B‑21.1 rulemaking procedures).

Purpose and intent
- Establish a statutory framework to treat nonalcoholic beverages made from hemp (including beverages containing hemp cannabinoids such as CBD or minor THC isomers) as a distinct regulated category separate from alcoholic beverages, and to authorize the ABC Commission to set public‑health and labeling standards for them.

Key definitions (notable)
- “Hemp‑derived beverage”: a nonalcoholic beverage fit for human consumption that contains hemp (G.S. 90‑87) and may contain hemp‑derived cannabinoids in excess of that statutory hemp threshold.
- “Hemp‑derived cannabinoid”: any phytocannabinoid found in hemp (explicitly lists delta‑9 THC, THCA, CBD, CBN, CBG, CBC, delta‑8, delta‑10, THCV, CBDV, etc.) and synthetic cannabinoids derived from hemp.
- “Alcoholic beverage” is amended to exclude hemp‑derived beverages; “malt beverage” definition is expanded to include hemp‑derived beverages.

Major provisions
- General prohibition: Except as otherwise authorized by the ABC Chapter, it is unlawful to manufacture, sell, transport, import, deliver, furnish, purchase, consume, or possess hemp‑derived beverages (G.S. 18B‑102(a2)).
- Penalty: Violations of the ABC Chapter (including unlawful handling of hemp‑derived beverages) are generally a Class 1 misdemeanor unless a different punishment is specified.
- Standards and testing (G.S. 18B‑206): The ABC Commission may set standards and adopt rules for hemp‑derived beverages (identity, labeling, safety). The Commission may test products; manufacturers must pay testing costs and submit a $10 fee per submitted test result for administrative costs. Products that do not meet a new standard may be sold or disposed of within 60 days of the standard’s effective date.
- Keg regulation: Keg (7.75+ gallon container) provisions and purchase‑transportation permit rules apply; purchase/transport of kegs requires a permit (G.S. 18B‑403.1(a)).
- Rulemaking: ABC Commission is authorized to adopt or amend rules to implement the act.

Who is affected
- Producers and manufacturers of hemp/CBD beverages, ingredient suppliers, retailers and wholesalers, on‑ and off‑premises vendors (including those handling kegs), and consumers.
- The ABC Commission (responsible for standards, testing, enforcement) and public health oversight bodies.
- Law enforcement and courts (enforcement, misdemeanor prosecutions).

Potential impacts and considerations
- Brings hemp‑derived beverages into a clearer regulatory framework under the ABC system while distinguishing them from alcoholic beverages.
- Imposes testing, labeling and standard‑compliance obligations on manufacturers (with associated costs).
- Broad prohibition language (“unlawful … except as otherwise provided”) suggests manufacturers and sellers must rely on ABC rules or specific authorizations to operate lawfully; rule development will determine operational requirements, permissible cannabinoid concentrations, labeling, and distribution pathways.

Compiled from official sources — confirm details with the bill’s official record.

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