NC Lawmakers Returned for a Gas-Tax Session. HB 328 Didn't Move. Here's When It Can Come Up Next

NC Lawmakers Returned for a Gas-Tax Session. HB 328 Didn't Move. Here's When It Can Come Up Next

North Carolina lawmakers were back in Raleigh on Wednesday, October 7, for a one-day special session. For anyone following the state's hemp debate, the obvious question is whether HB 328 moved while legislators were in the building.

It did not. Here is what the session covered, where the hemp bill stands, and the dates that matter between now and the end of the year.

Why Lawmakers Came Back to Raleigh

House Speaker Destin Hall and Senate leader Phil Berger called the session by joint proclamation after three-fifths of members asked for it. According to WWAY's reporting on the proclamation, its stated purpose was state tax relief on gas and diesel fuel.

Legislative leaders said ahead of time that the session would be limited to fuel. Because it was called by proclamation for that one purpose, it did not change the separate rules lawmakers set in August for what they can take up at their remaining sessions this year.

What Lawmakers Passed

Lawmakers approved House Bill 3, the Relief at the Pump Act, which temporarily suspends the state's 41-cent-per-gallon motor fuel tax through November 30. Carolina Journal reported that the suspension takes effect the day after the bill is signed. The measure is intended to lower fuel costs, although lawmakers acknowledged that drivers may not see the full 41-cent reduction reflected at the pump.

The House approved the bill 111 to 1, and the Senate approved it 41 to 0. According to WECT, the measure is expected to cost the state about $360 million, with the exact amount depending on when the suspension takes effect. Speaker Hall said the suspension could be extended.

The bill was sent to Governor Josh Stein. Before the session, Stein said the relief was a good thing while criticizing the timing so close to the election. As of the latest reports, he had not yet acted on the bill.

The session addressed only fuel costs. Hemp was not part of it.

Where HB 328 Stands

HB 328 remains in the House Rules, Calendar, and Operations Committee, where it was sent on July 30. Its history shows no action since then.

The bill has been in that position since late July. The Senate approved its conference report 37 to 6 on July 2. The House has not voted on it, and in early August it delayed taking the bill up.

The conference report would make several major changes to North Carolina's hemp laws if enacted, including:

•        An age-21 requirement for buying hemp-derived products

•        Criminal and civil penalties for selling prohibited products

•        A 0.4 milligram per container THC limit for hemp-derived products under the proposed state rules

That last provision is the one industry groups have warned would remove most hemp-derived products currently on store shelves.

When HB 328 Can Come Up Next

When lawmakers adjourned in August, they adopted a resolution limiting what business they can take up at later sessions. One of the permitted items is the adoption of conference reports for bills whose conferees were appointed by both chambers by August 6.

HB 328's conferees were appointed in June, so its conference report remains eligible at each of the General Assembly's remaining session blocks this year:

•        October 26 to 28, one week before the November 3 election

•        November 16 to 19, after the election

•        November 30 to December 18, the final block of the year

Eligible does not mean scheduled. No vote on HB 328 has been placed on a calendar, and in August Speaker Hall told Business North Carolina that the House would not take up the bill until after the November election.

If the House does take it up, members would vote on the conference report as negotiated, rather than reopening it for ordinary floor amendments. In practical terms, the House would vote on the conference report as a package rather than amend it on the floor.

Why the State and Federal Dates Overlap

The state and federal rules are separate, even though both use a 0.4 milligram per container figure. North Carolina's remaining sessions fall right alongside the federal hemp timeline, which makes the next two months unusually important for hemp businesses here:

•        November 12: one part of the federal hemp definition change is scheduled to take effect, covering cannabinoids that are not naturally produced by a Cannabis sativa L. plant

•        November 16 to 19: the General Assembly returns, after the November 12 change has already taken effect

•        December 11: the remaining federal changes, including the federal 0.4 milligram per container limit, are currently set to apply unless Congress acts again

•        November 30 to December 18: the General Assembly's final block, which includes December 11

Meanwhile, the Governor's Advisory Council on Cannabis is working on recommendations due December 31. At its September 29 meeting, the council announced a virtual full council meeting for October 27, although that date was not yet listed on the council's official meeting page as of October 8.

What You Can Do Before October 26

Your state House member will help decide whether HB 328 moves, and when. The General Assembly's website has a tool to look up your representative and their contact information.

If you own or work at a hemp business, the most useful thing you can share is specific: how many people you employ, what you sell, and what the 0.4 milligram limit would mean for your store.

Election timing matters too. In-person early voting runs from October 15 through 3 PM on October 31, and Election Day is November 3.

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