North Carolina Senate Bill S350 Introduced / Bill

                    GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2025 
S 	D 
SENATE BILL DRS35138-NLf-18A  
 
 
 
Short Title: Marijuana Justice and Reinvestment Act. 	(Public) 
Sponsors: Senators Meyer, Chaudhuri, and Murdock (Primary Sponsors). 
Referred to:  
 
*DRS35138 -NLf-18A* 
A BILL TO BE ENTITLED 1 
AN ACT TO LEGALIZE AND REGULATE THE SALE, POSSESSION, AND USE OF 2 
CANNABIS IN NORTH CAROLINA. 3 
The General Assembly of North Carolina enacts: 4 
 5 
PART I. LEGALIZATION OF POSSESSION AND SALE OF CANNABIS 6 
SECTION 1.1.(a) The General Statutes are amended by adding a new Chapter to 7 
read: 8 
"Chapter 18D. 9 
"Regulation of Cannabis. 10 
"Article 1. 11 
"General Provisions. 12 
"§ 18D-100.  Findings. 13 
The General Assembly finds all of the following: 14 
(1) Cannabis prohibition, like alcohol prohibition before it, has been a wasteful 15 
and destructive failure. About half of Americans admit to having used 16 
cannabis despite more than eight decades of prohibition. 17 
(2) Regulating cannabis similarly to alcohol will replace the uncontrolled illicit 18 
market with a well-regulated system. Legalization allows regulation and 19 
control to protect consumers, workers, communities, and the environment. 20 
(3) The prohibition of cannabis has had an unfair, disparate impact on persons 21 
and communities of color. A 2020 report by the American Civil Liberties 22 
Union found black individuals are three and six-tenths times as likely as white 23 
individuals to be arrested for cannabis possession, despite nearly identical use 24 
rates. 25 
(4) The prohibition of cannabis diverts law enforcement resources from violent 26 
and property crimes and subjects civilians to unnecessary police interactions. 27 
(5) Keeping cannabis illegal deprives the State of thousands of legal jobs and 28 
hundreds of millions of dollars in tax revenue. 29 
(6) The use of cannabis should be legal for persons 21 years of age or older and 30 
subject to taxation and regulation in a manner that does all of the following: 31 
a. Controls the production and distribution of cannabis under a system of 32 
licensing, regulation, and taxation. 33 
b. Includes lab testing, potency labeling, secure packaging, restrictions 34 
on advertising, and education about responsible use and risks. 35 
FILED SENATE
Mar 19, 2025
S.B. 350
PRINCIPAL CLERK General Assembly Of North Carolina 	Session 2025 
Page 2  	DRS35138-NLf-18A 
c. Fosters a responsible industry, whereby businesses will only be 1 
allowed to expand if they prioritize diversity, good wages, 2 
sustainability, and community investment. 3 
d. Promotes the participation of individuals most impacted by cannabis 4 
prohibition in the legal, regulated industry. 5 
e. Generates needed revenue, including to reinvest in communities that 6 
have been disproportionately impacted by prohibition, for substance 7 
abuse treatment and education, and to train more law enforcement 8 
officers to detect impaired driving. 9 
(7) It is necessary to ensure consistency and fairness in the application of this 10 
Chapter throughout the State and that, therefore, the matters addressed by this 11 
Chapter are, except as specified herein, matters of statewide concern. 12 
"§ 18D-101.  Definitions. 13 
Unless the context requires otherwise, the following definitions apply in this Chapter: 14 
(1) Cannabis. – All parts of the plant of the genus cannabis, the seeds thereof, the 15 
resin extracted from any part of the plant, and every compound, manufacture, 16 
salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, 17 
including cannabis concentrate. "Cannabis" does not include hemp, nor does 18 
it include fiber produced from the stalks, oil, or cake made from the seeds of 19 
the plant, or sterilized seed of the plant, which is incapable of germination. 20 
(2) Cannabis accessories. – Any equipment, products, or materials of any kind 21 
that are used, intended for use, or designed for use in planting, propagating, 22 
cultivating, growing, harvesting, composting, manufacturing, compounding, 23 
converting, producing, processing, preparing, testing, analyzing, packaging, 24 
repackaging, storing, vaporizing, or containing cannabis, or for ingesting, 25 
inhaling, or otherwise introducing cannabis into the human body. 26 
(3) Cannabis cultivation facility. – An entity registered to cultivate, prepare, and 27 
package cannabis, and sell cannabis to other cannabis establishments. A 28 
cannabis cultivation facility may not produce cannabis concentrates, tinctures, 29 
extracts, or other cannabis products unless it is also licensed as a cannabis 30 
product manufacturing facility. 31 
(4) Cannabis establishment. – A cannabis cultivation facility, an on-site 32 
consumption establishment, a cannabis testing facility, a cannabis product 33 
manufacturing facility, a cannabis transporter, or any other type of cannabis 34 
business authorized and registered by the Commission. 35 
(5) Cannabis product manufacturing facility. – An entity registered to purchase 36 
cannabis, manufacture, prepare, and package cannabis products, and sell 37 
cannabis and cannabis products to other cannabis establishments but not to 38 
consumers. 39 
(6) Cannabis products. – Products that are comprised of cannabis, cannabis 40 
concentrate, or cannabis extract and other ingredients and are intended for use 41 
or consumption, such as, but not limited to, edible products, ointments, and 42 
tinctures. 43 
(7) Cannabis testing facility. – An entity registered to test cannabis for potency 44 
and contaminants. 45 
(8) Cannabis transporter. – An entity registered to transport cannabis between 46 
cannabis establishments. 47 
(9) Commission. – The North Carolina Alcoholic Beverage Control Commission 48 
established under G.S. 18B-200. 49  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 3 
(10) Consumer. – A person 21 years of age or older who purchases cannabis or 1 
cannabis products for personal use by persons 21 years of age or older, but not 2 
for resale. 3 
(11) Hemp. – The plant of the genus cannabis and any part of such plant, whether 4 
growing or not, with a delta-9 tetrahydrocannabinol concentration that does 5 
not exceed three-tenths percent (0.3%) on a dry weight basis of any part of the 6 
plant cannabis, or per volume of weight of cannabis product, or the combined 7 
percent of delta-9 tetrahydrocannabinol and tetrahydrocannabinolic acid in 8 
any part of the cannabis plant regardless of moisture content. 9 
(12) Locality. – A city or county. 10 
(13) Office. – The Office of Community Reinvestment. 11 
(14) On-site consumption establishment. – An entity registered to sell cannabis or 12 
cannabis products for on-site consumption. 13 
(15) Possession limit. – Any of the following amounts: 14 
a. Two ounces of cannabis in a form other than concentrated cannabis or 15 
cannabis products. 16 
b. Fifteen grams of concentrated cannabis. 17 
c. Cannabis products containing no more than 2,000 milligrams of 18 
tetrahydrocannabinol. 19 
d. Six cannabis plants. 20 
e. Any additional cannabis produced by the person's cannabis plants 21 
provided that the possession of any amount of cannabis in excess of 2 22 
ounces of cannabis, 15 grams of concentrated cannabis, and cannabis 23 
products containing no more than 2,000 milligrams of 24 
tetrahydrocannabinol must be limited to the same property where the 25 
plants were cultivated. 26 
(16) Public place. – Any place to which the general public has access. It does not 27 
include an on-site consumption establishment. 28 
"§ 18D-102.  Applicability. 29 
This Chapter does not apply to medical cannabis regulated under Article 44 of Chapter 90 of 30 
the General Statutes. 31 
"Article 2. 32 
"Office of Community Reinvestment. 33 
"§ 18D-200.  Creation of the Office of Community Reinvestment. 34 
There is established in the Commission the Office of Community Reinvestment. The 35 
Governor shall appoint an Executive Director of the Office, who shall have at least five years of 36 
experience in civil rights advocacy, civil rights litigation, or social justice. 37 
"§ 18D-201.  Establishment of funds. 38 
(a) The following funds are established in the Commission: 39 
(1) The Community Reinvestment and Repair Fund. 40 
(2) The Social Opportunity Fund. 41 
(3) The Cannabis Education and Technical Assistance Fund. 42 
(b) No later than July 1 of each year, the Office shall produce and make publicly available 43 
a report on how the Community Reinvestment and Repair Fund, Social Opportunity Fund, and 44 
Cannabis Education and Technical Assistance Fund were allocated during the prior fiscal year. 45 
(c) No later than November 1 of each year, the Office shall solicit public input on the 46 
uses of the Community Reinvestment and Repair Fund, Social Opportunity Fund, and Cannabis 47 
Education and Technical Assistance Fund. The Office of Community Reinvestment shall publish 48 
a review of feedback received no later than December 15 of each year. 49 
"§ 18D-202.  Powers and duties of the Office. 50  General Assembly Of North Carolina 	Session 2025 
Page 4  	DRS35138-NLf-18A 
The Office shall promote and encourage full participation in the regulated cannabis industry 1 
by people from communities that have previously been disproportionately harmed by cannabis 2 
prohibition and enforcement in order to positively impact those communities. The Office shall 3 
have all of the following powers and duties: 4 
(1) Defining, by rule, the term "community reinvestment applicant" and 5 
considering whether the definition should include any or all of the following: 6 
a. Individuals with past convictions for a cannabis offense. 7 
b. Individuals whose parent had a prior conviction for a cannabis offense. 8 
c. Individuals who have had a less than honorable discharge from the 9 
military due to cannabis. 10 
d. Individuals from census tracts or other geographic areas 11 
disproportionately impacted by cannabis enforcement, poverty, 12 
unemployment, cannabis prohibition, mass incarceration, or systemic 13 
racism. 14 
e. Racial and ethnic minorities that have been disproportionately 15 
impacted by cannabis enforcement. 16 
f. Racial and ethnic minorities that have been disproportionately 17 
excluded from the legal cannabis industry. 18 
(2) Administering the Community Reinvestment and Repair Fund to improve the 19 
well-being of individuals and communities that have experienced a 20 
disproportionate negative impact from poverty, unemployment, cannabis 21 
prohibition and enforcement, mass incarceration, or systemic racism. Before 22 
determining how funds from the Community Reinvestment and Repair Fund 23 
will be allocated, the Office shall promote and hold public meetings in at least 24 
10 of the census tract areas that have been significantly impacted by poverty, 25 
unemployment, cannabis prohibition, mass incarceration, or systemic racism 26 
to seek input on the communities' needs and priorities for the Community 27 
Reinvestment and Repair Fund. The Office of Community Reinvestment shall 28 
distribute funds from the Community Reinvestment and Repair Fund in a 29 
manner that improves the well-being of communities and individuals that have 30 
been significantly impacted by poverty, unemployment, cannabis prohibition, 31 
mass incarceration, or systemic racism. Permissible uses of the fund include, 32 
but are not limited to, grants to nonprofit organizations or allocations to 33 
government agencies for any of the following: 34 
a. Housing assistance, including to promote home ownership among 35 
members of minority groups that are underrepresented in home 36 
ownership due to redlining or discrimination. 37 
b. Reentry services, including job training and placement. 38 
c. Scholarship assistance for low-income students. 39 
d. Grants to community-based organizations to provide services to 40 
prevent violence, support youth development, provide early 41 
intervention for youth and families, and promote community stability 42 
and safety. 43 
e. Legal or civic aid. 44 
(3) Administering the Social Opportunity Fund to issue zero-interest loans and 45 
grants to community reinvestment applicants and cannabis establishments 46 
owned and operated by community reinvestment applicants. 47 
(4) Administering the Cannabis Education and Technical Assistance Fund to 48 
provide free or low-cost training, education, and technical assistance for 49 
individuals working in the cannabis industry or owning a cannabis 50  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 5 
establishment, with a focus on individuals who would qualify as community 1 
reinvestment applicants. 2 
(5) Advising the Commission regarding regulations, including advising against 3 
implementing regulations and financial requirements that unnecessarily 4 
impose financial burdens that undermine the purposes of this Chapter and 5 
providing recommendations on regulations related to diversity, community 6 
reinvestment applications, and the Race to the Top scoring system. 7 
(6) Producing reports and recommendations on community reinvestment from the 8 
legal cannabis economy, including in ownership, management, and 9 
employment. 10 
(7) Investigating whether businesses are adhering to their obligations, including 11 
those undertaken as part of the Race to the Top scoring system, and 12 
recommending corrective action or discipline if they fail to do so, which may 13 
include a suspension or revocation of licenses. 14 
"Article 3. 15 
"Registration and Licensure. 16 
"§ 18D-300.  Registration with the Commission. 17 
(a) Each application or renewal application for an annual registration to operate a 18 
cannabis establishment shall be submitted to the Commission. A renewal application may be 19 
submitted up to 90 days prior to the expiration of the cannabis establishment's registration. 20 
(b) The Commission shall begin accepting and processing applications to operate 21 
cannabis establishments from community reinvestment applicants one year after the effective 22 
date of this Chapter. 23 
(c) The Commission may begin accepting and processing applications to operate 24 
cannabis establishments from applicants other than community reinvestment applicants no earlier 25 
than one year and 180 days after the effective date of this Chapter. 26 
(d) Upon receiving an application or renewal application for a cannabis establishment, 27 
the Commission shall immediately forward a copy of each application and half of the registration 28 
application fee to the local regulatory authority for the locality in which the applicant desires to 29 
operate the cannabis establishment, unless the locality has not designated a local regulatory 30 
authority. 31 
(e) Within 120 days after receiving an application or renewal application, the 32 
Commission shall issue an annual registration or a conditional registration to the applicant, unless 33 
the Commission finds the applicant is not in compliance with rules enacted by the Commission 34 
or the Commission is notified by the relevant locality that the applicant is not in compliance with 35 
ordinances and regulations in effect at the time of application. 36 
(f) Applicants may apply for conditional approval if they have not purchased or leased 37 
the property where their cannabis establishment would be located. If the applicant is otherwise 38 
qualified, the Commission shall provide conditional approval. Once the applicant provides the 39 
Commission with a completed, supplemental application that includes the premises, the 40 
Commission shall forward the information to the local regulatory authority and approve or reject 41 
the final application within 45 days from the date of submission. 42 
(g) Upon denial of an application, the Commission shall notify the applicant in writing 43 
of the specific reason for its denial. 44 
(h) Cannabis establishments, and the books and records maintained and created by 45 
cannabis establishments, are subject to inspection by the Commission. 46 
"§ 18D-301.  Licensure and local control. 47 
(a) An on-site consumption establishment shall only operate if the local regulatory 48 
authority in the locality where it is located issued a permit, license, or registration that expressly 49 
allows the operation of the on-site consumption establishment. 50  General Assembly Of North Carolina 	Session 2025 
Page 6  	DRS35138-NLf-18A 
(b) Except as provided in this subsection, a locality may prohibit the operation of any or 1 
all types of cannabis establishments within its jurisdiction through the enactment of an ordinance. 2 
A locality's prohibition on cannabis establishments shall not prohibit transportation through the 3 
locality by cannabis establishments located in other jurisdictions. 4 
(c) A locality may enact ordinances or regulations not in conflict with this Chapter, or 5 
with rules enacted pursuant to this Chapter, governing the time, place, manner, and number of 6 
cannabis establishment operations. A locality may establish civil penalties for violation of an 7 
ordinance or regulations governing the time, place, and manner of a cannabis establishment that 8 
may operate in such locality. 9 
(d) No locality may negotiate or enter into a host community agreement with a cannabis 10 
establishment or a cannabis establishment applicant. As used in this subsection, a "host 11 
community agreement" means an agreement that the cannabis establishment or applicant provide 12 
monies, donations, in-kind contributions, services, or anything of value to the locality. 13 
"Article 4. 14 
"Operation of Cannabis Stores. 15 
"§ 18D-400.  Definitions. 16 
For purposes of this Article, unless the context requires otherwise, the term "local board" is 17 
as defined in G.S. 18B-101. 18 
"§ 18D-401.  Sale of cannabis in ABC stores and cannabis stores. 19 
(a) Except as provided in Articles 1 and 3 of this Chapter, cannabis and cannabis products 20 
may only be sold in ABC stores or cannabis stores operated by local boards. For purposes of this 21 
subsection, the term "sold only in ABC stores or cannabis stores operated by local boards" 22 
includes online orders placed in accordance with subsection (b) of this section. 23 
(b) An ABC store or cannabis store may accept an online order, including payment, for 24 
cannabis sold in its store. An order for cannabis placed online pursuant to this subsection shall 25 
be picked up in person at the store by the individual who placed the order. An order placed online 26 
pursuant to this subsection shall include the name and unique identifier number of the individual 27 
placing the order, who shall be at least 21 years of age as shown on the form of identification 28 
authorized pursuant to G.S. 18B-302(d)(1) and otherwise legally authorized to purchase 29 
cannabis. An employee of the ABC store or cannabis store shall confirm that an online order for 30 
cannabis is picked up in person at the store by the individual who placed the order by verifying 31 
the individual's identification that conforms to the identifying information contained in the online 32 
order. 33 
"§ 18D-402.  Location, opening, and closing of stores. 34 
The provisions of G.S. 18B-801 shall apply to cannabis stores. 35 
"§ 18D-403.  When stores operate. 36 
(a) No cannabis store shall be open, and no ABC store or cannabis store employee shall 37 
sell cannabis, between 9:00 P.M. and 9:00 A.M. The local board shall otherwise determine 38 
opening and closing hours of its stores. 39 
(b) No cannabis store shall be open, and no ABC store or cannabis store employee shall 40 
sell cannabis, on any Sunday, Thanksgiving Day, or Christmas Day. A local board may otherwise 41 
determine the days on which its stores shall be closed. 42 
"§ 18D-404.  Rules. 43 
The Commission may adopt rules concerning the organization and operation of self-service 44 
cannabis stores, the size of cannabis store signs, the display of cannabis, solicitation in and around 45 
ABC stores, and any other subject relating to the efficient operation of cannabis stores. 46 
"Article 5. 47 
"Possession and Use of Cannabis. 48 
"§ 18D-500.  Personal use of cannabis. 49 
Notwithstanding any other provision of law, except as otherwise provided in this Chapter, 50 
the following acts are not unlawful and shall not be a criminal or civil offense under State law or 51  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 7 
an ordinance of any locality, or be a basis for seizure or forfeiture of assets under State law, for 1 
persons 21 years of age or older: 2 
(1) Possessing, consuming, ingesting, smoking, growing, using, processing, 3 
purchasing, or transporting an amount of cannabis that does not exceed the 4 
possession limit. 5 
(2) Transferring an amount of cannabis that does not exceed the possession limit 6 
to a person who is 21 years of age or older without remuneration. 7 
(3) Controlling property where actions described by this section occur. 8 
(4) Assisting another person who is 21 years of age or older in any of the acts 9 
described in this section. 10 
"§ 18D-501.  Restrictions on personal cultivation; penalty. 11 
(a) It is unlawful to cultivate cannabis plants in any of the following ways: 12 
(1) Cannabis plants may not be cultivated in a location where plants are subject 13 
to public view, including view from another private property, without the use 14 
of binoculars, aircraft, or other optical aids. 15 
(2) A person who cultivates cannabis must take reasonable precautions to ensure 16 
the plants are secure from unauthorized access and access by persons under 17 
21 years of age. For purposes of illustration and not limitation, cultivating 18 
cannabis in an enclosed, locked space that persons under 21 years of age do 19 
not possess a key to constitutes reasonable precautions. 20 
(3) Cannabis cultivation may only occur on property lawfully in possession of the 21 
cultivator or with the consent of the person in lawful possession of the 22 
property. 23 
(b) A person who violates subsection (a) of this section is guilty of an infraction, 24 
punishable by a fine of up to seven hundred fifty dollars ($750.00) or up to 75 hours of 25 
community service. 26 
"§ 18D-502.  Public smoking prohibited; penalty. 27 
(a) It is unlawful to smoke cannabis in a public place. 28 
(b) It is unlawful to smoke cannabis in an area of an on-site consumption establishment 29 
where cannabis smoking is prohibited. 30 
(c) A person who violates this section is guilty of an infraction, punishable by a fine of 31 
up to fifty dollars ($50.00) or up to five hours of community service. 32 
"§ 18D-503.  Consuming cannabis while operating a moving vehicle prohibited; penalty. 33 
(a) No person shall consume cannabis while operating or driving a motor vehicle, boat, 34 
vessel, aircraft, or other motorized device used for transportation. 35 
(b) Unless the conduct is covered under some other provision of law providing greater 36 
punishment, a person who violates subsection (a) of this section, and only consumed cannabis, 37 
is guilty of an infraction, punishable as follows: 38 
(1) For a first offense, any or all of the following: 39 
a. A fine not more than two hundred fifty dollars ($250.00). 40 
b. Not more than 25 hours of community service. 41 
c. Suspension of the person's drivers license for up to six months. 42 
(2) For a second or subsequent offense, any or all of the following: 43 
a. A fine not more than five hundred dollars ($500.00). 44 
b. Not more than 50 hours of community service. 45 
c. Suspension of the person's drivers license for up to one year. 46 
"§ 18D-504.  False identification; penalty. 47 
(a) A person who is under 21 years of age may not present or offer to a cannabis 48 
establishment or the cannabis establishment's agent or employee any written or oral evidence of 49 
age that is false, fraudulent, or not actually the minor's own for either of the following purposes: 50  General Assembly Of North Carolina 	Session 2025 
Page 8  	DRS35138-NLf-18A 
(1) Purchasing, attempting to purchase, or otherwise procuring or attempting to 1 
procure cannabis. 2 
(2) Gaining access to a cannabis establishment. 3 
(b) A person who violates this section is guilty of an infraction, punishable by a fine of 4 
not more than one hundred fifty dollars ($150.00) or up to 15 hours of community service. 5 
"§ 18D-505.  Unlawful cannabis extraction; penalty. 6 
(a) No person, other than a cannabis product manufacturing facility complying with this 7 
Chapter and Commission rules, may perform solvent-based extractions on cannabis using 8 
solvents other than water, glycerin, propylene glycol, vegetable oil, or food-grade ethanol. 9 
(b) No person may extract compounds from cannabis using ethanol in the presence or 10 
vicinity of open flame. 11 
(c) A person who violates this section is guilty of a Class E felony, which shall include a 12 
fine of not more than five thousand dollars ($5,000). 13 
"§ 18D-506.  Cannabis accessories authorized. 14 
(a) Except as provided in this section, notwithstanding any other provision of law, it is 15 
not unlawful and shall not be an offense under State law for persons 21 years of age or older to 16 
manufacture, possess, possess with intent to distribute, or purchase cannabis accessories or to 17 
distribute or sell cannabis accessories to a person who is 21 years of age or older. 18 
(b) Except as provided in this section, a person who is 21 years of age or older is 19 
authorized to manufacture, possess, and purchase cannabis accessories and to distribute or sell 20 
cannabis accessories to a person who is 21 years of age or older. This section is intended to meet 21 
the requirements of section 863 of Title 21 of the United States Code by authorizing, under State 22 
law, any person in compliance with this Chapter to manufacture, possess, or distribute cannabis 23 
accessories. 24 
(c) No person may manufacture, distribute, or sell cannabis accessories that violate rules 25 
adopted by the Commission. A first offense under this section is an infraction, punishable by a 26 
fine of up to one thousand dollars ($1,000) and forfeiture of the cannabis accessories. A second 27 
or subsequent offense of this section is a Class A1 misdemeanor punishable by a fine of up to 28 
five thousand dollars ($5,000), up to 180 days in jail, or both, and forfeiture of the cannabis 29 
accessories. 30 
"§ 18D-507.  Purchasing of cannabis or cannabis accessories unlawful in certain cases; 31 
penalties; treatment and education programs and services. 32 
(a) No person to whom cannabis or cannabis accessories may not lawfully be sold under 33 
this Chapter shall consume, purchase, or possess, or attempt to consume, purchase, or possess, 34 
any cannabis or cannabis accessories. 35 
(b) Any person 18 years of age or older who violates subsection (a) of this section is 36 
guilty of an infraction, punishable by a fine of up to twenty-five dollars ($25.00) or up to five 37 
hours of community service. Additionally, the person shall be ordered to enter a substance abuse 38 
treatment or education program, or both, if available, that in the opinion of the court best suits 39 
the needs of the person. 40 
(c) Any juvenile who violates subsection (a) of this section is guilty of an infraction, 41 
punishable by a fine of up to twenty-five dollars ($25.00) or up to five hours of community 42 
service. Additionally, the juvenile shall be ordered to enter a substance abuse treatment or 43 
education program, or both, if available, that in the opinion of the court best suits the needs of 44 
the juvenile. 45 
"§ 18D-508.  Nondiscrimination for personal use of cannabis. 46 
(a) A person shall not be subject to arrest, prosecution, or penalty in any manner, or be 47 
denied any right or privilege, including, but not limited to, disciplinary action by a business, 48 
occupational, or professional licensing board or bureau, solely for conduct permitted under this 49 
Chapter. 50  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 9 
(b) Except as provided in this section, neither the State nor any of its political 1 
subdivisions may impose any penalty or deny any benefit or entitlement for conduct permitted 2 
under this Chapter or for the presence of cannabinoids or cannabinoid metabolites in the urine, 3 
blood, saliva, breath, hair, or other tissue or fluid of a person who is 21 years of age or older. 4 
(c) Except as provided in this section, neither the State nor any of its political 5 
subdivisions may deny a drivers license, a professional license, housing assistance, social 6 
services, or other benefits based on cannabis use or for the presence of cannabinoids or 7 
cannabinoid metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of a person 8 
who is 21 years of age or older. 9 
(d) Notwithstanding any provision of law to the contrary, a person shall not be denied 10 
custody of or visitation with a minor for acting in accordance with this Chapter, unless the 11 
person's behavior is such that it creates an unreasonable danger to the minor that can be clearly 12 
articulated and substantiated. 13 
(e) Except as provided in this section, neither the State nor any of its political 14 
subdivisions may deny employment or a contract to a person for engaging in conduct permitted 15 
under this Chapter for a prior conviction for a nonviolent cannabis offense that does not involve 16 
distribution to minors or for testing positive for the presence of cannabinoids or cannabinoid 17 
metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of the individual's 18 
body. 19 
(f) For the purpose of medical care, including organ and tissue transplants, the use of 20 
cannabis does not constitute the use of an illicit substance or otherwise disqualify a person from 21 
needed medical care and may only be considered with respect to evidence-based clinical criteria. 22 
(g) Notwithstanding any provision of law to the contrary, unless there is a specific finding 23 
that the individual's use, cultivation, or possession of cannabis could create a danger to the 24 
individual or another person, it shall not be a violation of conditions of parole, probation, or 25 
pretrial release to do either of the following: 26 
(1) Engage in conduct allowed by this Chapter. 27 
(2) Test positive for cannabis, delta-9 tetrahydrocannabinol, or any other 28 
cannabinoid or metabolite of cannabis. 29 
(h) This section does not do any of the following: 30 
(1) Prevent a government employer from disciplining an employee or contractor 31 
for ingesting cannabis in the workplace or for working while impaired by 32 
cannabis. 33 
(2) Apply to the extent that they conflict with a governmental employer's 34 
obligations under federal law or regulations or to the extent that they would 35 
disqualify the entity from a monetary or licensing-related benefit under federal 36 
law or regulations. 37 
(3) Authorize any person to engage in, and does not prevent the imposition of any 38 
civil, criminal, discipline, or other penalties, including discipline or 39 
termination by a governmental employer, any task while under the influence 40 
of cannabis, when doing so would constitute negligence or professional 41 
malpractice. 42 
"§ 18D-509.  Lawful operation of cannabis-related facilities. 43 
(a) Notwithstanding any other provision of law, engaging in any activities involving 44 
cannabis, cannabis accessories, or cannabis products, if the person conducting the activities has 45 
obtained a current, valid registration to operate a cannabis establishment or is acting in his or her 46 
capacity as an owner, employee, or agent of a registered cannabis establishment and the activities 47 
are within the scope of activities allowed by the Commission for that type of cannabis 48 
establishment, is not unlawful and shall not be an offense under State law or be a basis for seizure 49 
or forfeiture of assets under State law. 50  General Assembly Of North Carolina 	Session 2025 
Page 10  	DRS35138-NLf-18A 
(b) Nothing in this section prevents the imposition of penalties for violating this Chapter 1 
or rules adopted by the Commission or localities pursuant to this Chapter. 2 
"§ 18D-510.  Verifying the age of cannabis consumers. 3 
(a) A cannabis establishment or an agent or staffer of a cannabis establishment may not 4 
sell, deliver, distribute, give, transfer, or otherwise furnish cannabis to a person under the age of 5 
21. 6 
(b) Except as otherwise provided in this section, in a prosecution for selling, transferring, 7 
delivering, distributing, giving, or otherwise furnishing cannabis, cannabis products, or cannabis 8 
accessories to any person who is under 21 years of age, it is a complete defense if both of the 9 
following requirements are met: 10 
(1) The person who sold, gave, or otherwise furnished cannabis, cannabis 11 
products, or cannabis accessories was a retail cannabis store or on-site 12 
consumption establishment or was acting in his or her capacity as an owner, 13 
employee, or agent of a retail cannabis store or on-site consumption 14 
establishment at the time the cannabis, cannabis products, or cannabis 15 
accessories were sold, given, or otherwise furnished to the person. 16 
(2) Before selling, giving, or otherwise furnishing cannabis, cannabis products, 17 
or cannabis accessories to a person who is under 21 years of age, the person 18 
who sold, gave, or otherwise furnished the cannabis or cannabis accessories 19 
or a staffer or agent of the retail cannabis store was shown a document that 20 
appeared to be issued by an agency of a federal, state, tribal, or foreign 21 
sovereign government and that indicated that the person to whom the cannabis 22 
or cannabis accessories were sold, given, or otherwise furnished was 21 years 23 
of age or older at the time the cannabis or cannabis accessories were sold, 24 
given, or otherwise furnished to the person. 25 
(c) Subsection (b) of this section does not apply if both of the following requirements are 26 
met: 27 
(1) The document that was shown to the person who sold, gave, or otherwise 28 
furnished the cannabis, cannabis products, or cannabis accessories was 29 
counterfeit, forged, altered, or issued to a person other than the person to 30 
whom the cannabis, cannabis products, or cannabis accessories were sold, 31 
given, or otherwise furnished. 32 
(2) Under the circumstances, a reasonable person would have known or suspected 33 
that the document was counterfeit, forged, altered, or issued to a person other 34 
than the person to whom the cannabis, cannabis products, or cannabis 35 
accessories were sold, given, or otherwise furnished. 36 
"§ 18D-511.  Occupational licensing. 37 
(a) A holder of a professional or occupational license may not be subject to professional 38 
discipline for providing advice or services related to cannabis establishments or applications to 39 
operate cannabis establishments on the basis that cannabis is illegal under federal law. 40 
(b) An applicant for a professional or occupational license may not be denied a license 41 
based on previous employment related to cannabis establishments operating in accordance with 42 
State law. 43 
"§ 18D-512.  Private property and tenant rights. 44 
(a) Except as provided in this section, the provisions of this Chapter do not require any 45 
person, corporation, or any other entity that occupies, owns, or controls a property to allow the 46 
consumption, cultivation, display, sale, or transfer of cannabis on or in that property. 47 
(b) Except as provided in this section, a landlord or property manager may not refuse to 48 
rent to a tenant, or otherwise discriminate against the tenant, based on a past conviction for a 49 
cannabis offense. 50  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 11 
(c) Except as provided in this section, in the case of the rental of a residential dwelling, 1 
a landlord or property manager may not prohibit the possession of cannabis or the consumption 2 
of cannabis by nonsmoked means. 3 
(d) Subsections (a) through (c) of this section do not apply if any of the following 4 
requirements are met: 5 
(1) The tenant is not leasing the entire dwelling. 6 
(2) The residence is incidental to detention or the provision of medical, geriatric, 7 
educational, counseling, religious, or similar service. 8 
(3) The residence is a transitional housing or sober living facility. 9 
(4) Failing to prohibit cannabis possession or consumption would violate federal 10 
law or regulations or cause the landlord to lose a monetary or licensing-related 11 
benefit under federal law or regulations. 12 
(e) After a warning, a landlord or property manager may take action against a tenant if 13 
the tenant's use of cannabis creates an odor that interferes with others' peaceful enjoyment of 14 
their home or property. 15 
"§ 18D-513.  Contracts enforceable. 16 
It is the public policy of this State that contracts related to the operation of a cannabis 17 
establishment registered pursuant to this Chapter should be enforceable. It is the public policy of 18 
this State that no contract entered into by a cannabis establishment or its employees or agents as 19 
permitted pursuant to a valid registration, or by those who allow property to be used by a cannabis 20 
establishment, its employees, or its agents as permitted pursuant to a valid registration, shall be 21 
unenforceable on the basis that cultivating, obtaining, manufacturing, distributing, dispensing, 22 
transporting, selling, possessing, or using cannabis or hemp is prohibited by federal law. 23 
"§ 18D-514.  Respecting State law. 24 
(a) No law enforcement officer employed by an agency that receives State or local 25 
government funds shall expend any State or local resources, including the officer's time, to effect 26 
any arrest or seizure of cannabis, or conduct any investigation, on the sole basis of activity the 27 
officer believes to constitute a violation of federal law if the officer has reason to believe that 28 
such activity is in compliance with this Chapter, nor shall any such officer expend any State or 29 
local resources, including the officer's time, to provide any information or logistical support 30 
related to such activity to any federal law enforcement authority or prosecuting entity. 31 
(b) No agency or political subdivision of the State may rely on a violation of federal law 32 
related to cannabis as the sole basis for taking an adverse action against a person. 33 
(c) For the purposes of State law, actions related to cannabis are considered lawful as 34 
long as they are in accordance with this Chapter. 35 
"§ 18D-515.  Rulemaking. 36 
(a) Not later than 180 days after the effective date of this Chapter, the Commission shall 37 
adopt rules necessary for implementation of this Chapter. Such rules shall not prohibit the 38 
operation of cannabis establishments, either expressly or through application, nor require such a 39 
high investment of risk, money, time, or any other resource or asset that the operation of a 40 
cannabis establishment is not worthy of being carried out in practice by a reasonably prudent 41 
businessperson. Such regulations shall include all of the following: 42 
(1) Procedures for the issuance, renewal, suspension, and revocation of a 43 
registration to operate a cannabis establishment, with such procedures subject 44 
to all requirements of Chapter 150B of the General Statutes. 45 
(2) Rules, procedures, and policies to promote and encourage full participation in 46 
the regulated cannabis industry by people from communities that have 47 
previously been disproportionately harmed by cannabis prohibition and 48 
enforcement and to positively impact those communities, which shall reflect 49 
input from the Office of Community Reinvestment, including all of the 50 
following: 51  General Assembly Of North Carolina 	Session 2025 
Page 12  	DRS35138-NLf-18A 
a. Conducting necessary and appropriate outreach to diverse groups that 1 
may qualify for participation in activities under this Chapter. 2 
b. Requiring each cannabis establishment to establish and adhere to 3 
policies that encourage diversity in employment, contracting, and 4 
other professional opportunities. 5 
c. Requiring any cannabis establishment with 25 or more employees to 6 
retain a diversity officer. 7 
d. Requiring each cannabis establishment to report on the diversity of its 8 
workforce, management, contracts, and ownership by January 1 of 9 
each year. 10 
e. Issuing rules allowing community reinvestment applicants to apply 11 
for, and be licensed for, cannabis establishment registrations no less 12 
than 180 days prior to applicants that are not community reinvestment 13 
applicants. 14 
(3) A Race to the Top scoring system to make the expansion of a cannabis 15 
establishment to more than two locations contingent on the cannabis 16 
establishment's contributions to opportunity and to benefiting the community. 17 
The system must reflect input from the Office of Community Reinvestment 18 
and shall include, but need not be limited to, considerations of diversity in the 19 
cannabis establishment's ownership and workforce, including in management; 20 
employment of reentering citizens with prior convictions; minority 21 
ownership; compensation packages and benefits for workers; investing in 22 
economically disadvantaged areas; whether the cannabis establishment 23 
incorporates principles of environmental resiliency or sustainability, including 24 
energy efficiency; or whether the principals are community reinvestment 25 
applicants. 26 
(4) A limit on the number of cannabis establishments a major investor may invest 27 
in, unless each additional establishment is owned and operated by a 28 
community reinvestment applicant. 29 
(5) A schedule of reasonable application, registration, and renewal fees, provided 30 
application fees shall not exceed five thousand dollars ($5,000), with this 31 
upper limit adjusted annually for inflation, unless the Commission determines 32 
a greater fee is necessary to carry out its responsibilities under this Chapter. 33 
(6) Qualifications for registration that are directly and demonstrably related to the 34 
operation of a cannabis establishment and that may not disqualify applicants 35 
solely for cannabis offenses prior to the effective date of this Chapter. 36 
(7) Security requirements. 37 
(8) Requirements for the transportation and storage of cannabis and cannabis 38 
products by cannabis establishments. 39 
(9) Requirements for the delivery of cannabis and cannabis products to 40 
consumers, including a prohibition on business names, logos, and other 41 
identifying language or images on delivery vehicles and a prohibition on 42 
delivering to any address located on land owned by the federal government or 43 
any address on land or in a building leased by the federal government. 44 
(10) Employment and training requirements, including requiring that each 45 
cannabis establishment create an identification badge for each employee or 46 
agent. These requirements may not disqualify applicants solely for cannabis 47 
offenses prior to the effective date of this Chapter. 48 
(11) Requirements designed to prevent the sale or diversion of cannabis and 49 
cannabis products to persons under the age of 21. 50  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 13 
(12) Requirements for cannabis and cannabis products sold or distributed by a 1 
cannabis establishment, including prohibiting any misleading labeling and 2 
requiring cannabis product labels to include all of the following: 3 
a. The length of time it typically takes for the product to take effect. 4 
b. A disclosure of ingredients and possible allergens. 5 
c. A nutritional fact panel. 6 
d. Requiring opaque, child-resistant packaging, which must be designed 7 
or constructed to be significantly difficult for children under 5 years 8 
of age to open and not difficult for normal adults to use properly as 9 
defined by 16 C.F.R. § 1700.20. 10 
e. Requiring that edible cannabis products be clearly identifiable, when 11 
practicable, with a standard symbol indicating that they contain 12 
cannabis. 13 
(13) Health and safety regulations and standards for the manufacture of cannabis 14 
products and both the indoor and outdoor cultivation of cannabis by cannabis 15 
establishments. 16 
(14) Restrictions on advertising, marketing, and signage, including, but not limited 17 
to, a prohibition on mass-market campaigns that have a high likelihood of 18 
reaching minors. 19 
(15) Rules to create at least six tiers of cannabis cultivation facilities, based on the 20 
size of the facility or the number of plants cultivated, and whether the 21 
cultivation occurs outdoors, indoors, or in a greenhouse. Security regulations 22 
and licensing fees must vary based on the size of the cultivation facility. 23 
(16) Restrictions or prohibitions on additives to cannabis and cannabis-infused 24 
products, including, but not limited to, those that are toxic or designed to make 25 
the product more addictive. 26 
(17) Prohibitions on products that are designed to make the product more appealing 27 
to children, including prohibiting the use of any images designed or likely to 28 
appeal to minors, including cartoons, toys, animals, or children, and any other 29 
likeness to images, characters, or phrases that are popularly used to advertise 30 
to children. 31 
(18) Restrictions on the use of pesticides that are injurious to human health. 32 
(19) Regulations governing visits to cannabis cultivation facilities and cannabis 33 
product manufacturing facilities, including requiring the cannabis 34 
establishment to log visitors. 35 
(20) A definition of the amount of delta-9 tetrahydrocannabinol that constitutes a 36 
single serving in a cannabis product. 37 
(21) Standards for the safe manufacture of cannabis extracts and concentrates. 38 
(22) Requirements that educational materials be disseminated to consumers who 39 
purchase cannabis-infused products. 40 
(23) Requirements for random sample testing to ensure quality control, including 41 
by ensuring that cannabis and cannabis-infused products are accurately 42 
labeled for potency. Unless the Commission determines that remediation or 43 
treatment is sufficient to ensure product safety, the testing analysis shall 44 
include testing for residual solvents, poisons, or toxins; harmful chemicals; 45 
dangerous molds or mildew; filth; and harmful microbials such as E. coli or 46 
salmonella and pesticides. 47 
(24) Standards for the operation of cannabis testing facilities, including 48 
requirements for equipment and qualifications for personnel. 49 
(25) Civil penalties for the failure to comply with rules made pursuant to this 50 
Chapter. 51  General Assembly Of North Carolina 	Session 2025 
Page 14  	DRS35138-NLf-18A 
(26) Procedures for collecting taxes levied on cannabis establishments. 1 
(27) Requirements for on-site consumption establishments, including for security, 2 
ventilation, odor control, and consumption by patrons. These rules may 3 
include a prohibition on smoking indoors. 4 
(b) After consulting with researchers knowledgeable about the risks and benefits of 5 
cannabis and providing an opportunity for public comment, the Commission shall develop a 6 
scientifically accurate safety information label, handout, or both, which shall be available to each 7 
adult-use cannabis consumer. The label or handout shall include both of the following: 8 
(1) Advice about the potential risks of cannabis, including any of the following: 9 
a. The risks of driving under the influence of cannabis and the fact that 10 
doing so is illegal. 11 
b. Any adverse effects unique to younger adults, including related to the 12 
developing mind. 13 
c. Potential adverse events and other risks. 14 
d. Risks of using cannabis during pregnancy or breastfeeding. 15 
(2) The need to safeguard all cannabis and cannabis products from children and 16 
pets. 17 
(c) The Commission shall review and update the safety information materials at least 18 
once every two years to ensure they remain accurate. The review period shall include soliciting 19 
input from researchers knowledgeable about the risks and benefits of cannabis and an opportunity 20 
for public comment. 21 
(d) In order to ensure that individual privacy is protected, the Commission shall not 22 
require a consumer to provide a retail cannabis store with personal information other than 23 
government-issued identification to determine the consumer's age and a retail cannabis store shall 24 
not be required to acquire and record personal information about consumers." 25 
SECTION 1.1.(b) This section becomes effective January 1, 2026, and applies to 26 
offenses committed on or after that date. 27 
SECTION 1.2.(a) Subchapter I of Chapter 105 of the General Statutes is amended 28 
by adding a new Article to read: 29 
"Article 2F. 30 
"Tax on Cannabis. 31 
"§ 105-113.150.  Definitions. 32 
The definitions in G.S. 18D-101, to the extent they do not conflict with this Article, and the 33 
following definitions apply in this Article: 34 
(1) Cannabis. – All parts of the plant of the genus cannabis, the seeds thereof, the 35 
resin extracted from any part of the plant, and every compound, manufacture 36 
salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, 37 
including cannabis concentrate. "Cannabis" does not include hemp, nor does 38 
it include fiber produced from the stalks, oil, or cake made from the seeds of 39 
the plant, or sterilized seed of the plant, which is incapable of germination. 40 
(2) Cannabis concentrate. – Any form of concentration, including extracts, oils, 41 
tinctures, shatter, and waxes, that is extracted from cannabis. 42 
(3) Cannabis edible product. – A product containing cannabis or cannabis 43 
concentrate, combined with other ingredients, that is intended for use or 44 
consumption through ingestion, including sublingual or oral absorption. 45 
(4) Cannabis plant material. – For purposes of this Article, "cannabis plant 46 
material" means cannabis flower, cannabis trim and all parts of any plant or 47 
species of the genus cannabis, or any infra specific taxon thereof, excluding a 48 
growing plant, and the seeds thereof. "Cannabis plant material" does not 49 
include hemp. 50  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 15 
(5) Manufacturer. – A cannabis product manufacturing facility as defined in 1 
G.S. 18D-101. 2 
(6) THC. – Tetrahydrocannabinol, including, but not limited to, delta-7, 3 
delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol, and 4 
delta-10-tetrahydrocannabinol, and any material, compound, mixture, or 5 
preparation which contains their salts, isomers, and salts of isomers, whenever 6 
the existence of such salts, isomers, and salts of isomers is possible within the 7 
specific chemical designation, regardless of the source, except (i) dronabinol 8 
substituted in sesame oil and encapsulated in a soft gelatin capsule in a federal 9 
Food and Drug Administration or successor agency approved product or (ii) 10 
any tetrahydrocannabinol product that has been approved by the federal Food 11 
and Drug Administration or successor agency to have a medical use and 12 
reclassified in any schedule of controlled substances or unscheduled by the 13 
federal Drug Enforcement Administration or successor agency. 14 
(7) Total THC. – The sum of the percentages by weight of tetrahydrocannabinolic 15 
acid, multiplied by eight hundred seventy-seven-thousandths, plus the 16 
percentage weight of THC. 17 
"§ 105-113.151.  Excise tax on cannabis. 18 
An excise tax is levied on cannabis and cannabis products possessed by manufacturers at the 19 
following rates: 20 
(1) Cannabis plant material, at the rate of six hundred twenty-five-thousandths of 21 
one cent (0.00625 of 1¢) per milligram of total THC, as reflected on the 22 
product label. 23 
(2) Cannabis edible products, at the rate of two hundred seventy-five 24 
ten-thousandths of one cent (0.0275 of 1¢) per milligram of total THC, as 25 
reflected on the product label. 26 
(3) Cannabis, other than cannabis plant material or cannabis edible products, at 27 
the rate of nine-tenths of one cent (0.9 of 1¢) per milligram of total THC, as 28 
reflected on the product label. 29 
"§ 105-113.152.  When tax payable; revenue stamps. 30 
(a) The tax imposed by this Article is payable by any manufacturer who possesses 31 
cannabis or cannabis products upon which the tax has not been paid, as evidence by a stamp. The 32 
tax is payable within 48 hours after the manufacturer acquires actual or constructive possession 33 
of the non-tax-paid cannabis or cannabis products taxed under G.S. 105-113.151, exclusive of 34 
Saturdays, Sundays, and legal holidays of this State, in which case the tax is payable on the next 35 
working day. Upon payment of the tax, the manufacturer shall permanently affix the appropriate 36 
stamps to the cannabis or cannabis product. Once the tax due on the cannabis or cannabis product 37 
has been paid, no additional tax is due under this Article even though the cannabis or cannabis 38 
product may be handled by other manufacturers. 39 
(b) The Secretary shall issue stamps to affix to cannabis and cannabis products taxed 40 
under G.S. 105-113.151 to indicate payment of the tax required by this Article. Manufacturers 41 
shall report the taxes payable under this Article at the time and on the return prescribed by the 42 
Secretary. Upon payment of the tax, the Secretary shall issue stamps in an amount equal to the 43 
amount of the tax paid. Taxes may be paid, and stamps may be issued in a manner determined 44 
by the Secretary. 45 
"§ 105-113.153.  Administration. 46 
Article 9 of this Chapter applies to this Article. 47 
"§ 105-113.154.  Assessments. 48 
Notwithstanding any other provision of law, an assessment against a manufacturer who 49 
possesses cannabis or cannabis products subject to tax under this Article to which a stamp has 50 
not been affixed as required by this Article shall be made as provided in this section. The 51  General Assembly Of North Carolina 	Session 2025 
Page 16  	DRS35138-NLf-18A 
Secretary shall assess a tax, applicable penalties, and interest based on personal knowledge or 1 
information available to the Secretary. The Secretary shall notify the manufacturer in writing of 2 
the amount of the tax, penalty, and interest due, and demand shall be either mailed to the 3 
manufacturer at the manufacturer's last known address or served on the manufacturer in person. 4 
If the manufacturer does not pay the tax, penalty, and interest immediately upon receipt of the 5 
notice and demand, the Secretary shall collect the tax, penalty, and interest pursuant to the 6 
jeopardy collection procedures in G.S. 105-241.23 or the general collection procedures in 7 
G.S. 105-242, including causing execution to be issued immediately against the personal 8 
property of the manufacturer, unless the manufacturer files with the Secretary a bond in the 9 
amount of the asserted liability for the tax, penalty, and interest. The Secretary shall use all means 10 
available to collect the tax, penalty, and interest from any property in which the manufacturer 11 
has a legal, equitable, or beneficial interest. The manufacturer may seek review of the assessment 12 
as provided in Article 9 of this Chapter. 13 
"§ 105-113.155.  Confidentiality of information. 14 
Information obtained by the Department in the course of administering the tax imposed by 15 
this Article, including information on whether the Department has issued a revenue stamp to a 16 
person, is confidential tax information and is subject to the provisions of G.S. 105-259. 17 
"§ 105-113.156.  Use of tax proceeds. 18 
(a) Special Account. – The Cannabis Regulation Account is established as a special 19 
nonreverting account. The Secretary shall credit the proceeds of the tax levied by this Article to 20 
the Account. 21 
(b) Distribution. – The Secretary shall distribute unencumbered tax proceeds in the 22 
Cannabis Regulation Account (Account) on a quarterly or more frequent basis. Tax proceeds in 23 
the Account are unencumbered when they are collectible under G.S. 105-241.22. The Secretary 24 
shall distribute the unencumbered tax proceeds in the Account as follows: 25 
(1) Fifty percent (50%) to the North Carolina Alcoholic Beverage Control 26 
Commission for purposes consistent with the regulation of cannabis in 27 
accordance with Chapter 18D of the General Statutes. 28 
(2) Twenty-five percent (25%) to the Community Reinvestment and Repair Fund 29 
established under Chapter 18D of the General Statutes. 30 
(3) Ten percent (10%) to the Social Opportunity Fund established under Chapter 31 
18D of the General Statutes. 32 
(4) Three percent (3%) to the Cannabis Education and Technical Assistance Fund 33 
established under Chapter 18D of the General Statutes. 34 
(5) Seven percent (7%) to the Department of Health and Human Services for use 35 
in evidence-based, voluntary programs for the prevention or treatment of 36 
substance abuse. 37 
(6) Two percent (2%) to the Department of Health and Human Services for a 38 
scientifically and medically accurate public education campaign educating 39 
youth and adults about the health and safety risks of alcohol, tobacco, 40 
cannabis, and other substances, including the risks of driving while impaired. 41 
(7) Two percent (2%) to the Department of Health and Human Services to fund 42 
diverse scientific, academic, or medical research on cannabis or 43 
endocannabinoids, including research exploring the benefits of cannabis, 44 
provided that all funded research data, results, and papers shall be released 45 
into the public domain and shall be published for free and open access by the 46 
public and by other researchers. 47 
(8) Up to one percent (1%) to the Department of Public Safety to fund Advanced 48 
Roadside Impaired Driving Enforcement and drug recognition expert training. 49 
(9) Any remaining funds shall be deposited in the General Fund." 50  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 17 
SECTION 1.2.(b) This section is effective for taxable years beginning on or after 1 
January 1, 2026. 2 
 3 
PART II. LEGALIZATION OF MEDICAL CANNABIS 4 
SECTION 2.1. Chapter 90 of the General Statutes is amended by adding a new 5 
Article to read: 6 
"Article 44. 7 
"North Carolina Medical Cannabis Act. 8 
"§ 90-748.  Short title. 9 
This Article shall be known and may be cited as the "North Carolina Medical Cannabis Act." 10 
"§ 90-749.  Definitions. 11 
The following definitions apply in this Article: 12 
(1) Department. – The North Carolina Department of Health and Human 13 
Services. 14 
(2) Patient. – A person who has been issued a written certification described in 15 
G.S. 90-751. 16 
(3) Physician. – A person who is licensed to prescribe drugs under the laws of this 17 
State. 18 
"§ 90-750.  Protections for the medical use of cannabis. 19 
(a) A patient shall not be subject to arrest, prosecution, or penalty in any manner, or 20 
denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by 21 
a business or occupational or professional licensing board or bureau, for the possession or 22 
purchase of cannabis for medical use by the patient if the quantity of usable cannabis possessed 23 
or purchased does not exceed an adequate supply, as determined by the North Carolina Medical 24 
Care Commission. 25 
(b) A designated caregiver shall not be subject to arrest, prosecution, or penalty in any 26 
manner, or denied any right or privilege, including imposition of a civil penalty or disciplinary 27 
action by a business or occupational or professional licensing board or bureau, for the possession 28 
or purchase of cannabis for medical use by the patient if the quantity of usable cannabis possessed 29 
or purchased does not exceed an adequate supply for the patient, as determined by the North 30 
Carolina Medical Care Commission. 31 
(c) Subsection (a) of this section does not apply to a patient under 18 years of age, unless 32 
all of the following criteria are met: 33 
(1) The patient's physician has explained the potential risks and benefits of the 34 
medical use of cannabis to the patient and to a parent, guardian, or person 35 
having legal custody of the patient. 36 
(2) A parent, guardian, or person having legal custody of the patient consents in 37 
writing to (i) allow the patient's medical use of cannabis, (ii) serve as the 38 
patient's designated caregiver, and (iii) control the dosage and frequency of 39 
the medical use of cannabis by the patient. 40 
(d) A patient or a designated caregiver shall be granted the full legal protections provided 41 
by this Article as long as the patient or designated caregiver is in possession of a registry 42 
identification card issued by the Department of Health and Human Services. If the patient or 43 
designated caregiver is not in possession of a registry identification card, the individual shall be 44 
given an opportunity to produce the registry identification card before the initiation of any arrest, 45 
criminal charges, or other penalties. 46 
(e) A patient or a designated caregiver is presumed to be engaged in the medical use of 47 
cannabis if the patient or designated caregiver is in possession of a registry identification card 48 
and an amount of cannabis that does not exceed the patient's adequate supply. This presumption 49 
may be rebutted only by evidence that the patient or designated caregiver engaged in conduct 50  General Assembly Of North Carolina 	Session 2025 
Page 18  	DRS35138-NLf-18A 
related to cannabis for a purpose other than alleviating a medical condition of the patient or 1 
symptoms associated with the medical condition. 2 
(f) A designated caregiver may receive reimbursement for costs associated with assisting 3 
a patient in the medical use of cannabis. Reimbursement for these costs does not constitute the 4 
sale of a controlled substance under Article 5 of this Chapter of the General Statutes. 5 
(g) A school, employer, or landlord shall neither refuse to enroll, employ, or lease to nor 6 
otherwise penalize a patient or designated caregiver solely because of (i) the individual's status 7 
as a patient or a designated caregiver or (ii) the presence of cannabis metabolites resulting from 8 
medical use of cannabis in the individual's bodily fluids. 9 
(h) For the purposes of medical care, including organ transplants, a patient's authorized 10 
use of cannabis in accordance with this Article shall be treated in the same manner as the 11 
authorized use of any other medication used at the direction of a physician and shall not constitute 12 
the use of an illegal substance. 13 
(i) A physician shall not be subject to arrest, prosecution, or penalty in any manner, or 14 
denied any right or privilege, or subject to increased monitoring or disciplinary action by the 15 
North Carolina Medical Board or any other business or occupational or professional licensing 16 
board or bureau for either of the following: 17 
(1) Advising a patient about the risks and benefits of the medical use of cannabis 18 
or that the patient may benefit from the medical use of cannabis if, in the 19 
physician's medical judgment, the potential benefits of the medical use of 20 
cannabis would likely outweigh the health risks for that particular patient. 21 
(2) Providing the patient with valid documentation, based upon the physician's 22 
assessment of that patient's medical history and current medical condition, that 23 
the potential benefits of the medical use of cannabis would likely outweigh 24 
the health risks for that particular patient. 25 
(j) A physician shall not be subject to arrest, prosecution, or penalty in any manner, or 26 
denied any right or privilege, or subject to disciplinary action by a business or occupational or 27 
professional licensing board or bureau for discussing with a patient the benefits or health risks of 28 
the medical use of cannabis or the interaction of cannabis with other substances. 29 
(k) State and local law enforcement officers shall not harm, neglect, injure, or destroy an 30 
individual's interest in or right to property that is possessed, owned, or used in connection with 31 
the medical use of cannabis, or acts incidental to the medical use of cannabis, while the property 32 
is in the possession of State or local law enforcement officials as a result of a seizure of the 33 
property in connection with the claimed medical use of cannabis. A person does not forfeit any 34 
right or interest in property seized in connected with the medical use of cannabis under any 35 
provision of State law providing for the forfeiture of property, unless the forfeiture is part of a 36 
sentence imposed upon the person as a result of a conviction of a criminal violation of this Article 37 
or entry of a plea of guilty to such violation. Cannabis, paraphernalia, or other property seized 38 
from a patient or designated caregiver in connection with the claimed medical use of cannabis 39 
shall be returned immediately upon the determination by a court, prosecutor, or law enforcement 40 
officer that the patient or designated caregiver is entitled to the protections of this Article. In 41 
making this determination, the court, a prosecutor, or a law enforcement officer shall consider as 42 
evidence the failure of law enforcement officers to actively investigate the case, a decision not 43 
to prosecute, the dismissal of charges, or acquittal. 44 
(l) A person shall not be denied custody of, or visitation or parenting time with, a minor 45 
for conduct allowed under this Article. 46 
(m) There is no presumption of neglect or child endangerment for conduct allowed under 47 
this Article. 48 
(n) No person shall be subject to arrest or prosecution for constructive possession, 49 
conspiracy, aiding and abetting, being an accessory, or any other offense, for simply being in the 50  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 19 
presence or vicinity of the medical use of cannabis as permitted under this Article or for assisting 1 
a patient with using or administering cannabis. 2 
(o) Possession of or application for a registry identification card shall not alone constitute 3 
probable cause to search the person or the property of the person possessing or applying for a 4 
registry identification card or otherwise subject the person or the person's property to inspection 5 
by any government agency. 6 
(p) If an individual being investigated by a law enforcement officer employed by a 7 
State-funded or locally funded law enforcement agency credibly asserts during the course of the 8 
investigation that the individual is a patient or designated caregiver, neither the law enforcement 9 
officer nor the law enforcement agency shall provide any information, except as required by 10 
federal law or the United States Constitution, from any cannabis-related investigation of the 11 
individual to any law enforcement authority that does not recognize the protections of this 12 
Article. Any prosecution of the individual for a violation of this Article shall be conducted 13 
pursuant to the laws of this State. 14 
(q) Nothing in this Article shall be construed to extend the protections of this Article to 15 
any person, including a patient or designated caregiver, to allow that person to acquire, possess, 16 
manufacture, produce, use, sell, distribute, dispense, or transport cannabis in a manner that is not 17 
consistent with this Article. 18 
"§ 90-751.  Registry identification cards for patients and designated caregivers. 19 
(a) The Department shall issue a registry identification card to any patient or designated 20 
caregiver who meets the requirements of this section. 21 
(b) The Department shall not issue or renew a registry identification card to a patient 22 
under 18 years of age unless each of the following criteria is met: 23 
(1) The patient's physician has explained the potential risks and benefits of the 24 
medical use of cannabis to the patient and to a parent, guardian, or person 25 
having legal custody of the patient. 26 
(2) A parent, guardian, or person having legal custody of the patient consents in 27 
writing to (i) allow the patient's medical use of cannabis, (ii) serve as one of 28 
the patient's designated caregivers, and (iii) control the acquisition of the 29 
cannabis, the dosage, and the frequency of medical use of cannabis by the 30 
patient. 31 
(c) The Department shall verify the information contained in a registry identification card 32 
application or renewal application submitted pursuant to this section and shall approve or deny 33 
an application or renewal application within 45 days after receipt. The Department may deny a 34 
registry identification card application or renewal application only if the applicant fails to provide 35 
the information required pursuant to this section or if the Department determines that the 36 
application or renewal application contains false information. If the Department fails to approve 37 
or deny a registration application or renewal application submitted pursuant to this section within 38 
45 days after receipt, the application or renewal application shall be deemed approved and a copy 39 
of the application or renewal application together with proof of receipt by the Department at least 40 
45 days prior to the date this information is presented in lieu of registry identification card shall 41 
be deemed a valid registry identification card. 42 
(d) The Department may issue a registry identification card to a maximum of two 43 
designated caregivers named in a patient's approved application. 44 
(e) The Department shall issue a registry identification card to an applicant within five 45 
days after approving an application or renewal application. The application or renewal 46 
application expires two years after the date of issuance. 47 
(f) Each registry identification card shall contain at least all of the following information: 48 
(1) The date of issuance. 49 
(2) The date of expiration. 50 
(3) A random registry identification number. 51  General Assembly Of North Carolina 	Session 2025 
Page 20  	DRS35138-NLf-18A 
(4) A photograph of the registry identification cardholder. 1 
(g) Persons issued registry identification cards shall be subject to the following: 2 
(1) A patient who has been issued a registry identification card shall notify the 3 
Department of any change in the patient's name, address, or designated 4 
caregiver and submit a ten dollar ($10.00) fee to the Department within 15 5 
days after the change occurs. A patient who fails to notify the Department of 6 
any of these changes within the specified time frame commits an infraction 7 
and is subject to a fine not to exceed more than one hundred fifty dollars 8 
($150.00). 9 
(2) A designated caregiver shall notify the Department of any change in name or 10 
address and submit a ten dollar ($10.00) fee to the Department within 15 days 11 
after the change occurs. A designated caregiver who fails to notify the 12 
Department of any of these changes within the specified time frame commits 13 
an infraction and is subject to a fine not to exceed one hundred fifty dollars 14 
($150.00). 15 
(3) When a patient or designated caregiver notifies the Department of any change, 16 
as required by this subsection, the Department shall issue the patient and each 17 
designated caregiver a new registry identification card within 10 days after 18 
receiving the updated information and the ten dollar ($10.00) fee. 19 
(4) When a patient who possesses a registry identification card notifies the 20 
Department of a change in designated caregiver, the Department shall notify 21 
the designated caregiver of record of the change within 15 days after receiving 22 
notification of the change. The protections afforded under this Article to the 23 
designated caregiver of record shall expire 30 days after the designated 24 
caregiver of record is notified by the Department of the change in designated 25 
caregiver. 26 
(5) If a patient or a designated caregiver loses a registry identification card, the 27 
cardholder shall notify the Department within 15 days after losing the card. 28 
The notification shall include a ten dollar ($10.00) replacement fee for a new 29 
card. Within five days after receiving notification of a lost registry 30 
identification card, the Department shall issue the cardholder a new registry 31 
identification card with a new random identification number. 32 
(h) If the Department determines that a patient or designated caregiver has willfully 33 
violated any provision of this Article, the Department may suspend or revoke the patient's or 34 
designated caregiver's registry identification card. 35 
(i) Applications and supporting information submitted by patients, including information 36 
regarding their designated caregivers and physicians, are confidential and protected under the 37 
federal Health Insurance Portability and Accountability Act of 1996. 38 
(j) The Department shall maintain a confidential list of the persons to whom the 39 
Department has issued registry identification cards. Individual names and other identifying 40 
information on the list are confidential, exempt from the provisions of Chapter 132 of the General 41 
Statutes, and are not subject to disclosure, except to authorized employees of the Department as 42 
necessary to perform official duties of the Department. 43 
(k) The Department shall verify to law enforcement personnel whether a registry 44 
identification card is valid solely by confirming the validity of the random registry identification 45 
number and the name of the person whom the Department has assigned the random registry 46 
identification number. 47 
(l) Any person, including an employee or official of the Department or another State 48 
agency or local government, who breaches the confidentiality of information obtained pursuant 49 
to this section is guilty of a Class 1 misdemeanor; however, any fine imposed for a violation 50 
under this subsection shall not exceed one thousand dollars ($1,000). 51  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 21 
(m) Nothing in this section shall be construed to prevent Department employees from 1 
notifying law enforcement officers about falsified or fraudulent information submitted to the 2 
Department by any individual in support of an application for a registry identification card. 3 
(n) Article 4 of Chapter 150B of the General Statutes governs judicial review of an 4 
administrative decision made under this section. 5 
(o) Not later than 120 days after the effective date of this act, the North Carolina Medical 6 
Care Commission shall adopt rules to implement the provisions of this section, including defining 7 
what constitutes a qualifying medical condition and an adequate supply of medical cannabis. The 8 
rules shall establish requirements for the issuance of registry identification cards to patients and 9 
designated caregivers, which shall include at least all of the following: 10 
(1) Written certification of a statement in a patient's medical records or a 11 
statement signed by a physician with whom the patient has a bona fide 12 
physician-patient relationship indicating that, in the physician's professional 13 
opinion, the patient is likely to receive therapeutic or palliative benefit from 14 
the medical use of cannabis to treat or alleviate the patient's qualifying medical 15 
condition or symptoms associated with the qualifying medical condition and 16 
the potential health benefits of the medical use of cannabis would likely 17 
outweigh the health risks for the patient. 18 
(2) An application for renewal fee. 19 
(3) The name, address, and date of birth of the patient, except that if a patient is 20 
homeless, no address is required. 21 
(4) The name, address, and telephone number of the patient's physician. 22 
(5) The name, address, and date of birth of each of the patient's designated 23 
caregivers, if any." 24 
SECTION 2.2. This Part becomes effective January 1, 2026, and applies to acts 25 
committed on or after that date. 26 
 27 
PART III. AUTOMATIC EXPUNCTION OF MARIJUANA OFFENSES 28 
SECTION 3.1. Article 5 of Chapter 15A of the General Statutes is amended by 29 
adding a new section to read: 30 
"§ 15A-145.8B.  Automatic expunction of certain marijuana offenses. 31 
(a) If a person was charged with an offense involving marijuana or hashish that is legal 32 
under Chapter 18D of the General Statutes, and such person was convicted, such conviction shall 33 
be ordered to be automatically expunged no later than July 1, 2028, in the manner set forth in 34 
this section. 35 
(b) The Administrative Office of the Courts shall determine which offenses meet the 36 
criteria for expunction set forth in subsection (a) of this section. Upon completing the 37 
determination required under this subsection, the Administrative Office of the Courts shall 38 
provide an electronic list of the offenses to the clerk of each superior court. Upon receipt of the 39 
electronic list required under this subsection, the clerk of each superior court shall prepare an 40 
order of expungement for each case that meets the criteria set forth in subsection (a) of this section 41 
and was finalized in his or her court. Upon completion of the order of expungement, the court 42 
shall order the expunction. Upon order of expungement, the clerk shall forward the petition to 43 
the Administrative Office of the Courts. 44 
(c) No person as to whom such an order has been entered under this section shall be held 45 
thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 46 
giving a false statement or response to any inquiry made for any purpose, by reason of the 47 
person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 48 
or trial. 49 
(d) The court shall also order that the conviction ordered expunged under this section be 50 
expunged from the records of the court and direct all law enforcement agencies bearing record 51  General Assembly Of North Carolina 	Session 2025 
Page 22  	DRS35138-NLf-18A 
of the same to expunge their records of the conviction. The clerk shall notify State and local 1 
agencies of the court's order as provided in G.S. 15A-150. 2 
(e) Any other applicable State or local government agency shall expunge from its records 3 
entries made as a result of the conviction ordered expunged under this section. The agency shall 4 
also reverse any administrative actions taken against a person whose record is expunged under 5 
this section as a result of the charges or convictions expunged. This subsection shall not apply to 6 
the Department of Justice for DNA records and samples stored in the State DNA Database and 7 
the State DNA Databank." 8 
SECTION 3.2. The Administrative Office of the Courts shall provide the list 9 
required under G.S. 15A-145.8B(b), as enacted by this Part, by October 1, 2027. 10 
SECTION 3.3. This Part becomes effective January 1, 2026. 11 
 12 
PART IV. CONFORMING CHANGES 13 
SECTION 4.1. G.S. 90-87(16) is repealed. 14 
SECTION 4.2. G.S. 90-94 is repealed. 15 
SECTION 4.3. G.S. 90-95 reads as rewritten: 16 
"§ 90-95.  Violations; penalties. 17 
… 18 
(b) Except as provided in subsections (h) and (i) of this section, any person who violates 19 
G.S. 90-95(a)(1) with respect to: 20 
… 21 
(2) A controlled substance classified in Schedule III, IV, V, or VI or V shall be 22 
punished as a Class I felon, except that the sale of a controlled substance 23 
classified in Schedule III, IV, V, or VI or V shall be punished as a Class H 24 
felon. The transfer of less than 5 grams of marijuana for no remuneration shall 25 
not constitute a delivery in violation of G.S. 90-95(a)(1). 26 
… 27 
(d) Except as provided in subsections (h) and (i) of this section, any person who violates 28 
G.S. 90-95(a)(3) with respect to: 29 
… 30 
(4) A controlled substance classified in Schedule VI shall be guilty of a Class 3 31 
misdemeanor, but any sentence of imprisonment imposed must be suspended 32 
and the judge may not require at the time of sentencing that the defendant 33 
serve a period of imprisonment as a special condition of probation. If the 34 
quantity of the controlled substance exceeds one-half of an ounce 35 
(avoirdupois) of marijuana or one-twentieth of an ounce (avoirdupois) of the 36 
extracted resin of marijuana, commonly known as hashish, the violation shall 37 
be punishable as a Class 1 misdemeanor. If the quantity of the controlled 38 
substance exceeds one and one-half ounces (avoirdupois) of marijuana, or 39 
three-twentieths of an ounce (avoirdupois) of the extracted resin of marijuana, 40 
commonly known as hashish, or if the controlled substance consists of any 41 
quantity of synthetic tetrahydrocannabinols or tetrahydrocannabinols isolated 42 
from the resin of marijuana, the violation shall be punishable as a Class I 43 
felony. 44 
… 45 
(e) The prescribed punishment and degree of any offense under this Article shall be 46 
subject to the following conditions, but the punishment for an offense may be increased only by 47 
the maximum authorized under any one of the applicable conditions: 48 
… 49 
(8) Any person 21 years of age or older who commits an offense under 50 
G.S. 90-95(a)(1) on property used for a child care center, or for an elementary 51  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 23 
or secondary school or within 1,000 feet of the boundary of real property used 1 
for a child care center, or for an elementary or secondary school shall be 2 
punished as a Class E felon. For purposes of this subdivision, the transfer of 3 
less than five grams of marijuana for no remuneration shall not constitute a 4 
delivery in violation of G.S. 90-95(a)(1). For purposes of this subdivision, a 5 
child care center is as defined in G.S. 110-86(3)a., and that is licensed by the 6 
Secretary of the Department of Health and Human Services. 7 
… 8 
(10) Any person 21 years of age or older who commits an offense under 9 
G.S. 90-95(a)(1) on property that is a public park or within 1,000 feet of the 10 
boundary of real property that is a public park shall be punished as a Class E 11 
felon. For purposes of this subdivision, the transfer of less than five grams of 12 
marijuana for no remuneration shall not constitute a delivery in violation of 13 
G.S. 90-95(a)(1). 14 
… 15 
(h) Notwithstanding any other provision of law, the following provisions apply except as 16 
otherwise provided in this Article: 17 
(1) Any person who sells, manufactures, delivers, transports, or possesses in 18 
excess of 10 pounds (avoirdupois) of marijuana shall be guilty of a felony 19 
which felony shall be known as "trafficking in marijuana" and if the quantity 20 
of such substance involved: 21 
a. Is in excess of 10 pounds, but less than 50 pounds, such person shall 22 
be punished as a Class H felon and shall be sentenced to a minimum 23 
term of 25 months and a maximum term of 39 months in the State's 24 
prison and shall be fined not less than five thousand dollars ($5,000); 25 
b. Is 50 pounds or more, but less than 2,000 pounds, such person shall be 26 
punished as a Class G felon and shall be sentenced to a minimum term 27 
of 35 months and a maximum term of 51 months in the State's prison 28 
and shall be fined not less than twenty-five thousand dollars ($25,000); 29 
c. Is 2,000 pounds or more, but less than 10,000 pounds, such person 30 
shall be punished as a Class F felon and shall be sentenced to a 31 
minimum term of 70 months and a maximum term of 93 months in the 32 
State's prison and shall be fined not less than fifty thousand dollars 33 
($50,000); 34 
d. Is 10,000 pounds or more, such person shall be punished as a Class D 35 
felon and shall be sentenced to a minimum term of 175 months and a 36 
maximum term of 222 months in the State's prison and shall be fined 37 
not less than two hundred thousand dollars ($200,000). 38 
…." 39 
SECTION 4.4. G.S. 90-113.22A is repealed. 40 
SECTION 4.5. G.S. 90-113.21 reads as rewritten: 41 
"§ 90-113.21.  General provisions. 42 
(a) As used in this Article, "drug paraphernalia" means all equipment, products and 43 
materials of any kind that are used to facilitate, or intended or designed to facilitate, violations of 44 
the Controlled Substances Act, including planting, propagating, cultivating, growing, harvesting, 45 
manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, 46 
packaging, repackaging, storing, containing, and concealing controlled substances and injecting, 47 
ingesting, inhaling, or otherwise introducing controlled substances into the human body. "Drug 48 
paraphernalia" includes, but is not limited to, the following: 49 
… 50  General Assembly Of North Carolina 	Session 2025 
Page 24  	DRS35138-NLf-18A 
(7) Separation gins and sifters for removing twigs and seeds from, or otherwise 1 
cleaning or refining, marijuana; 2 
… 3 
(12) Objects for ingesting, inhaling, or otherwise introducing marijuana, cocaine, 4 
hashish, or hashish oil cocaine into the body, such as: 5 
a. Metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or 6 
without screens, permanent screens, hashish heads, or punctured metal 7 
bowls; 8 
b. Water pipes; 9 
c. Carburetion tubes and devices; 10 
d. Smoking and carburetion masks; 11 
e. Objects, commonly called roach clips, for holding burning material, 12 
such as a marijuana cigarette, material that has become too small or 13 
too short to be held in the hand; 14 
…." 15 
SECTION 4.6. G.S. 105-113.106 reads as rewritten: 16 
"§ 105-113.106.  Definitions. 17 
The following definitions apply in this Article: 18 
… 19 
(3) Dealer. – Any of the following: 20 
a. A person who actually or constructively possesses more than 42.5 21 
grams of marijuana, seven or more grams of any other controlled 22 
substance other than marijuana that is sold by weight, or 10 or more 23 
dosage units of any other controlled substance that is not sold by 24 
weight. 25 
b. A person who in violation of Chapter 18B of the General Statutes 26 
possesses illicit spirituous liquor for sale. 27 
c. A person who in violation of Chapter 18B of the General Statutes 28 
possesses mash. 29 
d. A person who in violation of Chapter 18B of the General Statutes 30 
possesses an illicit mixed beverage for sale. 31 
… 32 
(6) Marijuana. – All parts of the plant of the genus Cannabis, whether growing or 33 
not; the seeds of this plant; the resin extracted from any part of this plant; and 34 
every compound, salt, derivative, mixture, or preparation of this plant, its 35 
seeds, or its resin. 36 
…." 37 
SECTION 4.7. G.S. 105-113.107 reads as rewritten: 38 
"§ 105-113.107.  Excise tax on unauthorized substances. 39 
(a) Controlled Substances. – An excise tax is levied on controlled substances possessed, 40 
either actually or constructively, by dealers at the following rates: 41 
(1) At the rate of forty cents (40¢) for each gram, or fraction thereof, of harvested 42 
marijuana stems and stalks that have been separated from and are not mixed 43 
with any other parts of the marijuana plant. 44 
(1a) At the rate of three dollars and fifty cents ($3.50) for each gram, or fraction 45 
thereof, of marijuana, other than separated stems and stalks taxed under 46 
subdivision (1) of this [sub]section, or synthetic cannabinoids. 47 
(1b) At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of 48 
cocaine. 49 
(1c) At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of any 50 
low-street-value drug that is sold by weight. 51  General Assembly Of North Carolina 	Session 2025 
DRS35138-NLf-18A  	Page 25 
(2) At the rate of two hundred dollars ($200.00) for each gram, or fraction thereof, 1 
of any other controlled substance that is sold by weight. 2 
(2a) At the rate of fifty dollars ($50.00) for each 10 dosage units, or fraction 3 
thereof, of any low-street-value drug that is not sold by weight. 4 
(3) At the rate of two hundred dollars ($200.00) for each 10 dosage units, or 5 
fraction thereof, of any other controlled substance that is not sold by weight. 6 
(a1) Weight. – A quantity of marijuana or other controlled substance is measured by the 7 
weight of the substance whether pure or impure or dilute, or by dosage units when the substance 8 
is not sold by weight, in the dealer's possession. A quantity of a controlled substance is dilute if 9 
it consists of a detectable quantity of pure controlled substance and any excipients or fillers. 10 
…." 11 
SECTION 4.8. G.S. 105-113.107A reads as rewritten: 12 
"§ 105-113.107A.  Exemptions. 13 
(a) Authorized Possession. – The tax levied in this Article does not apply to a substance 14 
in the possession of a dealer who is authorized by law to possess the substance. This exemption 15 
applies only during the time the dealer's possession of the substance is authorized by law. 16 
(b) Certain Marijuana Parts. – The tax levied in this Article does not apply to the 17 
following marijuana: 18 
(1) Harvested mature marijuana stalks when separated from and not mixed with 19 
any other parts of the marijuana plant. 20 
(2) Fiber or any other product of marijuana stalks described in subdivision (1) of 21 
this subsection, except resin extracted from the stalks. 22 
(3) Marijuana seeds that have been sterilized and are incapable of germination. 23 
(4) Roots of the marijuana plant." 24 
SECTION 4.9. G.S. 105-113.108(b)(1) is repealed. 25 
SECTION 4.10. G.S. 106-134(4) reads as rewritten: 26 
"(4) If it is for use by man and contains any quantity of the narcotic or hypnotic 27 
substance alphaeucaine, barbituric acid, betaeucaine, bromal, cannabis, 28 
carbromal, chloral, coca, cocaine, codeine, heroin, marijuana, morphine, 29 
opium, paraldehyde, peyote, or sulphonmethane; or any chemical derivative 30 
of such substances, which derivative has been by the Board after investigation, 31 
found to be, and by regulations under this Article, designated as, habit 32 
forming; unless its label bears the name and quantity or proportion of such 33 
substance or derivative and in juxtaposition therewith the statement "Warning 34 
– May be habit forming."" 35 
SECTION 4.11. G.S. 148-64.1(a)(2)e. is repealed. 36 
SECTION 4.12. G.S. 90-94.1 is repealed. 37 
SECTION 4.13. This Part becomes effective January 1, 2026, and applies to offenses 38 
committed on or after that date. 39 
 40 
PART V. SAVINGS CLAUSE, SEVERABILITY CLAUSE, AND EFFECTIVE DATE 41 
SECTION 5.1. Prosecutions for offenses committed before the effective date of this 42 
act are not abated or affected by this act, and the statutes that would be applicable but for this act 43 
remain applicable to those prosecutions. 44 
SECTION 5.2. If any provision of this act or its application is held invalid, the 45 
invalidity does not affect other provisions or applications of this act that can be given effect 46 
without the invalid provisions or application and, to this end, the provisions of this act are 47 
severable. 48 
SECTION 5.3. Except as otherwise provided in this act, this act is effective when it 49 
becomes law. 50