North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S350 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 350
	3	+	S D
	4	+	SENATE BILL DRS35138-NLf-18A
	5	+
5	6
6	7
7	8		Short Title: Marijuana Justice and Reinvestment Act. (Public)
8	9		Sponsors: Senators Meyer, Chaudhuri, and Murdock (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 20, 2025~~
11		-	~~S350 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS35138 -NLf-18A
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO LEGALIZE AND REGULATE THE SALE, POSSESSION, AND USE OF 2
14	15		CANNABIS IN NORTH CAROLINA. 3
15	16		The General Assembly of North Carolina enacts: 4
16	17		5
17	18		PART I. LEGALIZATION OF POSSESSION AND SALE OF CANNABIS 6
18	19		SECTION 1.1.(a) The General Statutes are amended by adding a new Chapter to 7
19	20		read: 8
20	21		"Chapter 18D. 9
21	22		"Regulation of Cannabis. 10
22	23		"Article 1. 11
23	24		"General Provisions. 12
24	25		"§ 18D-100. Findings. 13
25	26		The General Assembly finds all of the following: 14
26	27		(1) Cannabis prohibition, like alcohol prohibition before it, has been a wasteful 15
27	28		and destructive failure. About half of Americans admit to having used 16
28	29		cannabis despite more than eight decades of prohibition. 17
29	30		(2) Regulating cannabis similarly to alcohol will replace the uncontrolled illicit 18
30	31		market with a well-regulated system. Legalization allows regulation and 19
31	32		control to protect consumers, workers, communities, and the environment. 20
32	33		(3) The prohibition of cannabis has had an unfair, disparate impact on persons 21
33	34		and communities of color. A 2020 report by the American Civil Liberties 22
34	35		Union found black individuals are three and six-tenths times as likely as white 23
35	36		individuals to be arrested for cannabis possession, despite nearly identical use 24
36	37		rates. 25
37	38		(4) The prohibition of cannabis diverts law enforcement resources from violent 26
38	39		and property crimes and subjects civilians to unnecessary police interactions. 27
39	40		(5) Keeping cannabis illegal deprives the State of thousands of legal jobs and 28
40	41		hundreds of millions of dollars in tax revenue. 29
41	42		(6) The use of cannabis should be legal for persons 21 years of age or older and 30
42	43		subject to taxation and regulation in a manner that does all of the following: 31
43	44		a. Controls the production and distribution of cannabis under a system of 32
44	45		licensing, regulation, and taxation. 33
45	46		b. Includes lab testing, potency labeling, secure packaging, restrictions 34
46		-	on advertising, and education about responsible use and risks. 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 350-First Edition
	47	+	on advertising, and education about responsible use and risks. 35
	48	+	FILED SENATE
	49	+	Mar 19, 2025
	50	+	S.B. 350
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS35138-NLf-18A
48	53		c. Fosters a responsible industry, whereby businesses will only be 1
49	54		allowed to expand if they prioritize diversity, good wages, 2
50	55		sustainability, and community investment. 3
51	56		d. Promotes the participation of individuals most impacted by cannabis 4
52	57		prohibition in the legal, regulated industry. 5
53	58		e. Generates needed revenue, including to reinvest in communities that 6
54	59		have been disproportionately impacted by prohibition, for substance 7
55	60		abuse treatment and education, and to train more law enforcement 8
56	61		officers to detect impaired driving. 9
57	62		(7) It is necessary to ensure consistency and fairness in the application of this 10
58	63		Chapter throughout the State and that, therefore, the matters addressed by this 11
59	64		Chapter are, except as specified herein, matters of statewide concern. 12
60	65		"§ 18D-101. Definitions. 13
61	66		Unless the context requires otherwise, the following definitions apply in this Chapter: 14
62	67		(1) Cannabis. – All parts of the plant of the genus cannabis, the seeds thereof, the 15
63	68		resin extracted from any part of the plant, and every compound, manufacture, 16
64	69		salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, 17
65	70		including cannabis concentrate. "Cannabis" does not include hemp, nor does 18
66	71		it include fiber produced from the stalks, oil, or cake made from the seeds of 19
67	72		the plant, or sterilized seed of the plant, which is incapable of germination. 20
68	73		(2) Cannabis accessories. – Any equipment, products, or materials of any kind 21
69	74		that are used, intended for use, or designed for use in planting, propagating, 22
70	75		cultivating, growing, harvesting, composting, manufacturing, compounding, 23
71	76		converting, producing, processing, preparing, testing, analyzing, packaging, 24
72	77		repackaging, storing, vaporizing, or containing cannabis, or for ingesting, 25
73	78		inhaling, or otherwise introducing cannabis into the human body. 26
74	79		(3) Cannabis cultivation facility. – An entity registered to cultivate, prepare, and 27
75	80		package cannabis, and sell cannabis to other cannabis establishments. A 28
76	81		cannabis cultivation facility may not produce cannabis concentrates, tinctures, 29
77	82		extracts, or other cannabis products unless it is also licensed as a cannabis 30
78	83		product manufacturing facility. 31
79	84		(4) Cannabis establishment. – A cannabis cultivation facility, an on-site 32
80	85		consumption establishment, a cannabis testing facility, a cannabis product 33
81	86		manufacturing facility, a cannabis transporter, or any other type of cannabis 34
82	87		business authorized and registered by the Commission. 35
83	88		(5) Cannabis product manufacturing facility. – An entity registered to purchase 36
84	89		cannabis, manufacture, prepare, and package cannabis products, and sell 37
85	90		cannabis and cannabis products to other cannabis establishments but not to 38
86	91		consumers. 39
87	92		(6) Cannabis products. – Products that are comprised of cannabis, cannabis 40
88	93		concentrate, or cannabis extract and other ingredients and are intended for use 41
89	94		or consumption, such as, but not limited to, edible products, ointments, and 42
90	95		tinctures. 43
91	96		(7) Cannabis testing facility. – An entity registered to test cannabis for potency 44
92	97		and contaminants. 45
93	98		(8) Cannabis transporter. – An entity registered to transport cannabis between 46
94	99		cannabis establishments. 47
95	100		(9) Commission. – The North Carolina Alcoholic Beverage Control Commission 48
96	101		established under G.S. 18B-200. 49 General Assembly Of North Carolina Session 2025
97		-	~~Senate Bill 350-First Edition~~ Page 3
	102	+	DRS35138-NLf-18A Page 3
98	103		(10) Consumer. – A person 21 years of age or older who purchases cannabis or 1
99	104		cannabis products for personal use by persons 21 years of age or older, but not 2
100	105		for resale. 3
101	106		(11) Hemp. – The plant of the genus cannabis and any part of such plant, whether 4
102	107		growing or not, with a delta-9 tetrahydrocannabinol concentration that does 5
103	108		not exceed three-tenths percent (0.3%) on a dry weight basis of any part of the 6
104	109		plant cannabis, or per volume of weight of cannabis product, or the combined 7
105	110		percent of delta-9 tetrahydrocannabinol and tetrahydrocannabinolic acid in 8
106	111		any part of the cannabis plant regardless of moisture content. 9
107	112		(12) Locality. – A city or county. 10
108	113		(13) Office. – The Office of Community Reinvestment. 11
109	114		(14) On-site consumption establishment. – An entity registered to sell cannabis or 12
110	115		cannabis products for on-site consumption. 13
111	116		(15) Possession limit. – Any of the following amounts: 14
112	117		a. Two ounces of cannabis in a form other than concentrated cannabis or 15
113	118		cannabis products. 16
114	119		b. Fifteen grams of concentrated cannabis. 17
115	120		c. Cannabis products containing no more than 2,000 milligrams of 18
116	121		tetrahydrocannabinol. 19
117	122		d. Six cannabis plants. 20
118	123		e. Any additional cannabis produced by the person's cannabis plants 21
119	124		provided that the possession of any amount of cannabis in excess of 2 22
120	125		ounces of cannabis, 15 grams of concentrated cannabis, and cannabis 23
121	126		products containing no more than 2,000 milligrams of 24
122	127		tetrahydrocannabinol must be limited to the same property where the 25
123	128		plants were cultivated. 26
124	129		(16) Public place. – Any place to which the general public has access. It does not 27
125	130		include an on-site consumption establishment. 28
126	131		"§ 18D-102. Applicability. 29
127	132		This Chapter does not apply to medical cannabis regulated under Article 44 of Chapter 90 of 30
128	133		the General Statutes. 31
129	134		"Article 2. 32
130	135		"Office of Community Reinvestment. 33
131	136		"§ 18D-200. Creation of the Office of Community Reinvestment. 34
132	137		There is established in the Commission the Office of Community Reinvestment. The 35
133	138		Governor shall appoint an Executive Director of the Office, who shall have at least five years of 36
134	139		experience in civil rights advocacy, civil rights litigation, or social justice. 37
135	140		"§ 18D-201. Establishment of funds. 38
136	141		(a) The following funds are established in the Commission: 39
137	142		(1) The Community Reinvestment and Repair Fund. 40
138	143		(2) The Social Opportunity Fund. 41
139	144		(3) The Cannabis Education and Technical Assistance Fund. 42
140	145		(b) No later than July 1 of each year, the Office shall produce and make publicly available 43
141	146		a report on how the Community Reinvestment and Repair Fund, Social Opportunity Fund, and 44
142	147		Cannabis Education and Technical Assistance Fund were allocated during the prior fiscal year. 45
143	148		(c) No later than November 1 of each year, the Office shall solicit public input on the 46
144	149		uses of the Community Reinvestment and Repair Fund, Social Opportunity Fund, and Cannabis 47
145	150		Education and Technical Assistance Fund. The Office of Community Reinvestment shall publish 48
146	151		a review of feedback received no later than December 15 of each year. 49
147	152		"§ 18D-202. Powers and duties of the Office. 50 General Assembly Of North Carolina Session 2025
148		-	Page 4 ~~Senate Bill 350-First Edition~~
	153	+	Page 4 DRS35138-NLf-18A
149	154		The Office shall promote and encourage full participation in the regulated cannabis industry 1
150	155		by people from communities that have previously been disproportionately harmed by cannabis 2
151	156		prohibition and enforcement in order to positively impact those communities. The Office shall 3
152	157		have all of the following powers and duties: 4
153	158		(1) Defining, by rule, the term "community reinvestment applicant" and 5
154	159		considering whether the definition should include any or all of the following: 6
155	160		a. Individuals with past convictions for a cannabis offense. 7
156	161		b. Individuals whose parent had a prior conviction for a cannabis offense. 8
157	162		c. Individuals who have had a less than honorable discharge from the 9
158	163		military due to cannabis. 10
159	164		d. Individuals from census tracts or other geographic areas 11
160	165		disproportionately impacted by cannabis enforcement, poverty, 12
161	166		unemployment, cannabis prohibition, mass incarceration, or systemic 13
162	167		racism. 14
163	168		e. Racial and ethnic minorities that have been disproportionately 15
164	169		impacted by cannabis enforcement. 16
165	170		f. Racial and ethnic minorities that have been disproportionately 17
166	171		excluded from the legal cannabis industry. 18
167	172		(2) Administering the Community Reinvestment and Repair Fund to improve the 19
168	173		well-being of individuals and communities that have experienced a 20
169	174		disproportionate negative impact from poverty, unemployment, cannabis 21
170	175		prohibition and enforcement, mass incarceration, or systemic racism. Before 22
171	176		determining how funds from the Community Reinvestment and Repair Fund 23
172	177		will be allocated, the Office shall promote and hold public meetings in at least 24
173	178		10 of the census tract areas that have been significantly impacted by poverty, 25
174	179		unemployment, cannabis prohibition, mass incarceration, or systemic racism 26
175	180		to seek input on the communities' needs and priorities for the Community 27
176	181		Reinvestment and Repair Fund. The Office of Community Reinvestment shall 28
177	182		distribute funds from the Community Reinvestment and Repair Fund in a 29
178	183		manner that improves the well-being of communities and individuals that have 30
179	184		been significantly impacted by poverty, unemployment, cannabis prohibition, 31
180	185		mass incarceration, or systemic racism. Permissible uses of the fund include, 32
181	186		but are not limited to, grants to nonprofit organizations or allocations to 33
182	187		government agencies for any of the following: 34
183	188		a. Housing assistance, including to promote home ownership among 35
184	189		members of minority groups that are underrepresented in home 36
185	190		ownership due to redlining or discrimination. 37
186	191		b. Reentry services, including job training and placement. 38
187	192		c. Scholarship assistance for low-income students. 39
188	193		d. Grants to community-based organizations to provide services to 40
189	194		prevent violence, support youth development, provide early 41
190	195		intervention for youth and families, and promote community stability 42
191	196		and safety. 43
192	197		e. Legal or civic aid. 44
193	198		(3) Administering the Social Opportunity Fund to issue zero-interest loans and 45
194	199		grants to community reinvestment applicants and cannabis establishments 46
195	200		owned and operated by community reinvestment applicants. 47
196	201		(4) Administering the Cannabis Education and Technical Assistance Fund to 48
197	202		provide free or low-cost training, education, and technical assistance for 49
198	203		individuals working in the cannabis industry or owning a cannabis 50 General Assembly Of North Carolina Session 2025
199		-	~~Senate Bill 350-First Edition~~ Page 5
	204	+	DRS35138-NLf-18A Page 5
200	205		establishment, with a focus on individuals who would qualify as community 1
201	206		reinvestment applicants. 2
202	207		(5) Advising the Commission regarding regulations, including advising against 3
203	208		implementing regulations and financial requirements that unnecessarily 4
204	209		impose financial burdens that undermine the purposes of this Chapter and 5
205	210		providing recommendations on regulations related to diversity, community 6
206	211		reinvestment applications, and the Race to the Top scoring system. 7
207	212		(6) Producing reports and recommendations on community reinvestment from the 8
208	213		legal cannabis economy, including in ownership, management, and 9
209	214		employment. 10
210	215		(7) Investigating whether businesses are adhering to their obligations, including 11
211	216		those undertaken as part of the Race to the Top scoring system, and 12
212	217		recommending corrective action or discipline if they fail to do so, which may 13
213	218		include a suspension or revocation of licenses. 14
214	219		"Article 3. 15
215	220		"Registration and Licensure. 16
216	221		"§ 18D-300. Registration with the Commission. 17
217	222		(a) Each application or renewal application for an annual registration to operate a 18
218	223		cannabis establishment shall be submitted to the Commission. A renewal application may be 19
219	224		submitted up to 90 days prior to the expiration of the cannabis establishment's registration. 20
220	225		(b) The Commission shall begin accepting and processing applications to operate 21
221	226		cannabis establishments from community reinvestment applicants one year after the effective 22
222	227		date of this Chapter. 23
223	228		(c) The Commission may begin accepting and processing applications to operate 24
224	229		cannabis establishments from applicants other than community reinvestment applicants no earlier 25
225	230		than one year and 180 days after the effective date of this Chapter. 26
226	231		(d) Upon receiving an application or renewal application for a cannabis establishment, 27
227	232		the Commission shall immediately forward a copy of each application and half of the registration 28
228	233		application fee to the local regulatory authority for the locality in which the applicant desires to 29
229	234		operate the cannabis establishment, unless the locality has not designated a local regulatory 30
230	235		authority. 31
231	236		(e) Within 120 days after receiving an application or renewal application, the 32
232	237		Commission shall issue an annual registration or a conditional registration to the applicant, unless 33
233	238		the Commission finds the applicant is not in compliance with rules enacted by the Commission 34
234	239		or the Commission is notified by the relevant locality that the applicant is not in compliance with 35
235	240		ordinances and regulations in effect at the time of application. 36
236	241		(f) Applicants may apply for conditional approval if they have not purchased or leased 37
237	242		the property where their cannabis establishment would be located. If the applicant is otherwise 38
238	243		qualified, the Commission shall provide conditional approval. Once the applicant provides the 39
239	244		Commission with a completed, supplemental application that includes the premises, the 40
240	245		Commission shall forward the information to the local regulatory authority and approve or reject 41
241	246		the final application within 45 days from the date of submission. 42
242	247		(g) Upon denial of an application, the Commission shall notify the applicant in writing 43
243	248		of the specific reason for its denial. 44
244	249		(h) Cannabis establishments, and the books and records maintained and created by 45
245	250		cannabis establishments, are subject to inspection by the Commission. 46
246	251		"§ 18D-301. Licensure and local control. 47
247	252		(a) An on-site consumption establishment shall only operate if the local regulatory 48
248	253		authority in the locality where it is located issued a permit, license, or registration that expressly 49
249	254		allows the operation of the on-site consumption establishment. 50 General Assembly Of North Carolina Session 2025
250		-	Page 6 ~~Senate Bill 350-First Edition~~
	255	+	Page 6 DRS35138-NLf-18A
251	256		(b) Except as provided in this subsection, a locality may prohibit the operation of any or 1
252	257		all types of cannabis establishments within its jurisdiction through the enactment of an ordinance. 2
253	258		A locality's prohibition on cannabis establishments shall not prohibit transportation through the 3
254	259		locality by cannabis establishments located in other jurisdictions. 4
255	260		(c) A locality may enact ordinances or regulations not in conflict with this Chapter, or 5
256	261		with rules enacted pursuant to this Chapter, governing the time, place, manner, and number of 6
257	262		cannabis establishment operations. A locality may establish civil penalties for violation of an 7
258	263		ordinance or regulations governing the time, place, and manner of a cannabis establishment that 8
259	264		may operate in such locality. 9
260	265		(d) No locality may negotiate or enter into a host community agreement with a cannabis 10
261	266		establishment or a cannabis establishment applicant. As used in this subsection, a "host 11
262	267		community agreement" means an agreement that the cannabis establishment or applicant provide 12
263	268		monies, donations, in-kind contributions, services, or anything of value to the locality. 13
264	269		"Article 4. 14
265	270		"Operation of Cannabis Stores. 15
266	271		"§ 18D-400. Definitions. 16
267	272		For purposes of this Article, unless the context requires otherwise, the term "local board" is 17
268	273		as defined in G.S. 18B-101. 18
269	274		"§ 18D-401. Sale of cannabis in ABC stores and cannabis stores. 19
270	275		(a) Except as provided in Articles 1 and 3 of this Chapter, cannabis and cannabis products 20
271	276		may only be sold in ABC stores or cannabis stores operated by local boards. For purposes of this 21
272	277		subsection, the term "sold only in ABC stores or cannabis stores operated by local boards" 22
273	278		includes online orders placed in accordance with subsection (b) of this section. 23
274	279		(b) An ABC store or cannabis store may accept an online order, including payment, for 24
275	280		cannabis sold in its store. An order for cannabis placed online pursuant to this subsection shall 25
276	281		be picked up in person at the store by the individual who placed the order. An order placed online 26
277	282		pursuant to this subsection shall include the name and unique identifier number of the individual 27
278	283		placing the order, who shall be at least 21 years of age as shown on the form of identification 28
279	284		authorized pursuant to G.S. 18B-302(d)(1) and otherwise legally authorized to purchase 29
280	285		cannabis. An employee of the ABC store or cannabis store shall confirm that an online order for 30
281	286		cannabis is picked up in person at the store by the individual who placed the order by verifying 31
282	287		the individual's identification that conforms to the identifying information contained in the online 32
283	288		order. 33
284	289		"§ 18D-402. Location, opening, and closing of stores. 34
285	290		The provisions of G.S. 18B-801 shall apply to cannabis stores. 35
286	291		"§ 18D-403. When stores operate. 36
287	292		(a) No cannabis store shall be open, and no ABC store or cannabis store employee shall 37
288	293		sell cannabis, between 9:00 P.M. and 9:00 A.M. The local board shall otherwise determine 38
289	294		opening and closing hours of its stores. 39
290	295		(b) No cannabis store shall be open, and no ABC store or cannabis store employee shall 40
291	296		sell cannabis, on any Sunday, Thanksgiving Day, or Christmas Day. A local board may otherwise 41
292	297		determine the days on which its stores shall be closed. 42
293	298		"§ 18D-404. Rules. 43
294	299		The Commission may adopt rules concerning the organization and operation of self-service 44
295	300		cannabis stores, the size of cannabis store signs, the display of cannabis, solicitation in and around 45
296	301		ABC stores, and any other subject relating to the efficient operation of cannabis stores. 46
297	302		"Article 5. 47
298	303		"Possession and Use of Cannabis. 48
299	304		"§ 18D-500. Personal use of cannabis. 49
300	305		Notwithstanding any other provision of law, except as otherwise provided in this Chapter, 50
301	306		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
302		-	~~Senate Bill 350-First Edition~~ Page 7
	307	+	DRS35138-NLf-18A Page 7
303	308		an ordinance of any locality, or be a basis for seizure or forfeiture of assets under State law, for 1
304	309		persons 21 years of age or older: 2
305	310		(1) Possessing, consuming, ingesting, smoking, growing, using, processing, 3
306	311		purchasing, or transporting an amount of cannabis that does not exceed the 4
307	312		possession limit. 5
308	313		(2) Transferring an amount of cannabis that does not exceed the possession limit 6
309	314		to a person who is 21 years of age or older without remuneration. 7
310	315		(3) Controlling property where actions described by this section occur. 8
311	316		(4) Assisting another person who is 21 years of age or older in any of the acts 9
312	317		described in this section. 10
313	318		"§ 18D-501. Restrictions on personal cultivation; penalty. 11
314	319		(a) It is unlawful to cultivate cannabis plants in any of the following ways: 12
315	320		(1) Cannabis plants may not be cultivated in a location where plants are subject 13
316	321		to public view, including view from another private property, without the use 14
317	322		of binoculars, aircraft, or other optical aids. 15
318	323		(2) A person who cultivates cannabis must take reasonable precautions to ensure 16
319	324		the plants are secure from unauthorized access and access by persons under 17
320	325		21 years of age. For purposes of illustration and not limitation, cultivating 18
321	326		cannabis in an enclosed, locked space that persons under 21 years of age do 19
322	327		not possess a key to constitutes reasonable precautions. 20
323	328		(3) Cannabis cultivation may only occur on property lawfully in possession of the 21
324	329		cultivator or with the consent of the person in lawful possession of the 22
325	330		property. 23
326	331		(b) A person who violates subsection (a) of this section is guilty of an infraction, 24
327	332		punishable by a fine of up to seven hundred fifty dollars ($750.00) or up to 75 hours of 25
328	333		community service. 26
329	334		"§ 18D-502. Public smoking prohibited; penalty. 27
330	335		(a) It is unlawful to smoke cannabis in a public place. 28
331	336		(b) It is unlawful to smoke cannabis in an area of an on-site consumption establishment 29
332	337		where cannabis smoking is prohibited. 30
333	338		(c) A person who violates this section is guilty of an infraction, punishable by a fine of 31
334	339		up to fifty dollars ($50.00) or up to five hours of community service. 32
335	340		"§ 18D-503. Consuming cannabis while operating a moving vehicle prohibited; penalty. 33
336	341		(a) No person shall consume cannabis while operating or driving a motor vehicle, boat, 34
337	342		vessel, aircraft, or other motorized device used for transportation. 35
338	343		(b) Unless the conduct is covered under some other provision of law providing greater 36
339	344		punishment, a person who violates subsection (a) of this section, and only consumed cannabis, 37
340	345		is guilty of an infraction, punishable as follows: 38
341	346		(1) For a first offense, any or all of the following: 39
342	347		a. A fine not more than two hundred fifty dollars ($250.00). 40
343	348		b. Not more than 25 hours of community service. 41
344	349		c. Suspension of the person's drivers license for up to six months. 42
345	350		(2) For a second or subsequent offense, any or all of the following: 43
346	351		a. A fine not more than five hundred dollars ($500.00). 44
347	352		b. Not more than 50 hours of community service. 45
348	353		c. Suspension of the person's drivers license for up to one year. 46
349	354		"§ 18D-504. False identification; penalty. 47
350	355		(a) A person who is under 21 years of age may not present or offer to a cannabis 48
351	356		establishment or the cannabis establishment's agent or employee any written or oral evidence of 49
352	357		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
353		-	Page 8 ~~Senate Bill 350-First Edition~~
	358	+	Page 8 DRS35138-NLf-18A
354	359		(1) Purchasing, attempting to purchase, or otherwise procuring or attempting to 1
355	360		procure cannabis. 2
356	361		(2) Gaining access to a cannabis establishment. 3
357	362		(b) A person who violates this section is guilty of an infraction, punishable by a fine of 4
358	363		not more than one hundred fifty dollars ($150.00) or up to 15 hours of community service. 5
359	364		"§ 18D-505. Unlawful cannabis extraction; penalty. 6
360	365		(a) No person, other than a cannabis product manufacturing facility complying with this 7
361	366		Chapter and Commission rules, may perform solvent-based extractions on cannabis using 8
362	367		solvents other than water, glycerin, propylene glycol, vegetable oil, or food-grade ethanol. 9
363	368		(b) No person may extract compounds from cannabis using ethanol in the presence or 10
364	369		vicinity of open flame. 11
365	370		(c) A person who violates this section is guilty of a Class E felony, which shall include a 12
366	371		fine of not more than five thousand dollars ($5,000). 13
367	372		"§ 18D-506. Cannabis accessories authorized. 14
368	373		(a) Except as provided in this section, notwithstanding any other provision of law, it is 15
369	374		not unlawful and shall not be an offense under State law for persons 21 years of age or older to 16
370	375		manufacture, possess, possess with intent to distribute, or purchase cannabis accessories or to 17
371	376		distribute or sell cannabis accessories to a person who is 21 years of age or older. 18
372	377		(b) Except as provided in this section, a person who is 21 years of age or older is 19
373	378		authorized to manufacture, possess, and purchase cannabis accessories and to distribute or sell 20
374	379		cannabis accessories to a person who is 21 years of age or older. This section is intended to meet 21
375	380		the requirements of section 863 of Title 21 of the United States Code by authorizing, under State 22
376	381		law, any person in compliance with this Chapter to manufacture, possess, or distribute cannabis 23
377	382		accessories. 24
378	383		(c) No person may manufacture, distribute, or sell cannabis accessories that violate rules 25
379	384		adopted by the Commission. A first offense under this section is an infraction, punishable by a 26
380	385		fine of up to one thousand dollars ($1,000) and forfeiture of the cannabis accessories. A second 27
381	386		or subsequent offense of this section is a Class A1 misdemeanor punishable by a fine of up to 28
382	387		five thousand dollars ($5,000), up to 180 days in jail, or both, and forfeiture of the cannabis 29
383	388		accessories. 30
384	389		"§ 18D-507. Purchasing of cannabis or cannabis accessories unlawful in certain cases; 31
385	390		penalties; treatment and education programs and services. 32
386	391		(a) No person to whom cannabis or cannabis accessories may not lawfully be sold under 33
387	392		this Chapter shall consume, purchase, or possess, or attempt to consume, purchase, or possess, 34
388	393		any cannabis or cannabis accessories. 35
389	394		(b) Any person 18 years of age or older who violates subsection (a) of this section is 36
390	395		guilty of an infraction, punishable by a fine of up to twenty-five dollars ($25.00) or up to five 37
391	396		hours of community service. Additionally, the person shall be ordered to enter a substance abuse 38
392	397		treatment or education program, or both, if available, that in the opinion of the court best suits 39
393	398		the needs of the person. 40
394	399		(c) Any juvenile who violates subsection (a) of this section is guilty of an infraction, 41
395	400		punishable by a fine of up to twenty-five dollars ($25.00) or up to five hours of community 42
396	401		service. Additionally, the juvenile shall be ordered to enter a substance abuse treatment or 43
397	402		education program, or both, if available, that in the opinion of the court best suits the needs of 44
398	403		the juvenile. 45
399	404		"§ 18D-508. Nondiscrimination for personal use of cannabis. 46
400	405		(a) A person shall not be subject to arrest, prosecution, or penalty in any manner, or be 47
401	406		denied any right or privilege, including, but not limited to, disciplinary action by a business, 48
402	407		occupational, or professional licensing board or bureau, solely for conduct permitted under this 49
403	408		Chapter. 50 General Assembly Of North Carolina Session 2025
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	409	+	DRS35138-NLf-18A Page 9
405	410		(b) Except as provided in this section, neither the State nor any of its political 1
406	411		subdivisions may impose any penalty or deny any benefit or entitlement for conduct permitted 2
407	412		under this Chapter or for the presence of cannabinoids or cannabinoid metabolites in the urine, 3
408	413		blood, saliva, breath, hair, or other tissue or fluid of a person who is 21 years of age or older. 4
409	414		(c) Except as provided in this section, neither the State nor any of its political 5
410	415		subdivisions may deny a drivers license, a professional license, housing assistance, social 6
411	416		services, or other benefits based on cannabis use or for the presence of cannabinoids or 7
412	417		cannabinoid metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of a person 8
413	418		who is 21 years of age or older. 9
414	419		(d) Notwithstanding any provision of law to the contrary, a person shall not be denied 10
415	420		custody of or visitation with a minor for acting in accordance with this Chapter, unless the 11
416	421		person's behavior is such that it creates an unreasonable danger to the minor that can be clearly 12
417	422		articulated and substantiated. 13
418	423		(e) Except as provided in this section, neither the State nor any of its political 14
419	424		subdivisions may deny employment or a contract to a person for engaging in conduct permitted 15
420	425		under this Chapter for a prior conviction for a nonviolent cannabis offense that does not involve 16
421	426		distribution to minors or for testing positive for the presence of cannabinoids or cannabinoid 17
422	427		metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of the individual's 18
423	428		body. 19
424	429		(f) For the purpose of medical care, including organ and tissue transplants, the use of 20
425	430		cannabis does not constitute the use of an illicit substance or otherwise disqualify a person from 21
426	431		needed medical care and may only be considered with respect to evidence-based clinical criteria. 22
427	432		(g) Notwithstanding any provision of law to the contrary, unless there is a specific finding 23
428	433		that the individual's use, cultivation, or possession of cannabis could create a danger to the 24
429	434		individual or another person, it shall not be a violation of conditions of parole, probation, or 25
430	435		pretrial release to do either of the following: 26
431	436		(1) Engage in conduct allowed by this Chapter. 27
432	437		(2) Test positive for cannabis, delta-9 tetrahydrocannabinol, or any other 28
433	438		cannabinoid or metabolite of cannabis. 29
434	439		(h) This section does not do any of the following: 30
435	440		(1) Prevent a government employer from disciplining an employee or contractor 31
436	441		for ingesting cannabis in the workplace or for working while impaired by 32
437	442		cannabis. 33
438	443		(2) Apply to the extent that they conflict with a governmental employer's 34
439	444		obligations under federal law or regulations or to the extent that they would 35
440	445		disqualify the entity from a monetary or licensing-related benefit under federal 36
441	446		law or regulations. 37
442	447		(3) Authorize any person to engage in, and does not prevent the imposition of any 38
443	448		civil, criminal, discipline, or other penalties, including discipline or 39
444	449		termination by a governmental employer, any task while under the influence 40
445	450		of cannabis, when doing so would constitute negligence or professional 41
446	451		malpractice. 42
447	452		"§ 18D-509. Lawful operation of cannabis-related facilities. 43
448	453		(a) Notwithstanding any other provision of law, engaging in any activities involving 44
449	454		cannabis, cannabis accessories, or cannabis products, if the person conducting the activities has 45
450	455		obtained a current, valid registration to operate a cannabis establishment or is acting in his or her 46
451	456		capacity as an owner, employee, or agent of a registered cannabis establishment and the activities 47
452	457		are within the scope of activities allowed by the Commission for that type of cannabis 48
453	458		establishment, is not unlawful and shall not be an offense under State law or be a basis for seizure 49
454	459		or forfeiture of assets under State law. 50 General Assembly Of North Carolina Session 2025
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	460	+	Page 10 DRS35138-NLf-18A
456	461		(b) Nothing in this section prevents the imposition of penalties for violating this Chapter 1
457	462		or rules adopted by the Commission or localities pursuant to this Chapter. 2
458	463		"§ 18D-510. Verifying the age of cannabis consumers. 3
459	464		(a) A cannabis establishment or an agent or staffer of a cannabis establishment may not 4
460	465		sell, deliver, distribute, give, transfer, or otherwise furnish cannabis to a person under the age of 5
461	466		21. 6
462	467		(b) Except as otherwise provided in this section, in a prosecution for selling, transferring, 7
463	468		delivering, distributing, giving, or otherwise furnishing cannabis, cannabis products, or cannabis 8
464	469		accessories to any person who is under 21 years of age, it is a complete defense if both of the 9
465	470		following requirements are met: 10
466	471		(1) The person who sold, gave, or otherwise furnished cannabis, cannabis 11
467	472		products, or cannabis accessories was a retail cannabis store or on-site 12
468	473		consumption establishment or was acting in his or her capacity as an owner, 13
469	474		employee, or agent of a retail cannabis store or on-site consumption 14
470	475		establishment at the time the cannabis, cannabis products, or cannabis 15
471	476		accessories were sold, given, or otherwise furnished to the person. 16
472	477		(2) Before selling, giving, or otherwise furnishing cannabis, cannabis products, 17
473	478		or cannabis accessories to a person who is under 21 years of age, the person 18
474	479		who sold, gave, or otherwise furnished the cannabis or cannabis accessories 19
475	480		or a staffer or agent of the retail cannabis store was shown a document that 20
476	481		appeared to be issued by an agency of a federal, state, tribal, or foreign 21
477	482		sovereign government and that indicated that the person to whom the cannabis 22
478	483		or cannabis accessories were sold, given, or otherwise furnished was 21 years 23
479	484		of age or older at the time the cannabis or cannabis accessories were sold, 24
480	485		given, or otherwise furnished to the person. 25
481	486		(c) Subsection (b) of this section does not apply if both of the following requirements are 26
482	487		met: 27
483	488		(1) The document that was shown to the person who sold, gave, or otherwise 28
484	489		furnished the cannabis, cannabis products, or cannabis accessories was 29
485	490		counterfeit, forged, altered, or issued to a person other than the person to 30
486	491		whom the cannabis, cannabis products, or cannabis accessories were sold, 31
487	492		given, or otherwise furnished. 32
488	493		(2) Under the circumstances, a reasonable person would have known or suspected 33
489	494		that the document was counterfeit, forged, altered, or issued to a person other 34
490	495		than the person to whom the cannabis, cannabis products, or cannabis 35
491	496		accessories were sold, given, or otherwise furnished. 36
492	497		"§ 18D-511. Occupational licensing. 37
493	498		(a) A holder of a professional or occupational license may not be subject to professional 38
494	499		discipline for providing advice or services related to cannabis establishments or applications to 39
495	500		operate cannabis establishments on the basis that cannabis is illegal under federal law. 40
496	501		(b) An applicant for a professional or occupational license may not be denied a license 41
497	502		based on previous employment related to cannabis establishments operating in accordance with 42
498	503		State law. 43
499	504		"§ 18D-512. Private property and tenant rights. 44
500	505		(a) Except as provided in this section, the provisions of this Chapter do not require any 45
501	506		person, corporation, or any other entity that occupies, owns, or controls a property to allow the 46
502	507		consumption, cultivation, display, sale, or transfer of cannabis on or in that property. 47
503	508		(b) Except as provided in this section, a landlord or property manager may not refuse to 48
504	509		rent to a tenant, or otherwise discriminate against the tenant, based on a past conviction for a 49
505	510		cannabis offense. 50 General Assembly Of North Carolina Session 2025
506		-	~~Senate Bill 350-First Edition~~ Page 11
	511	+	DRS35138-NLf-18A Page 11
507	512		(c) Except as provided in this section, in the case of the rental of a residential dwelling, 1
508	513		a landlord or property manager may not prohibit the possession of cannabis or the consumption 2
509	514		of cannabis by nonsmoked means. 3
510	515		(d) Subsections (a) through (c) of this section do not apply if any of the following 4
511	516		requirements are met: 5
512	517		(1) The tenant is not leasing the entire dwelling. 6
513	518		(2) The residence is incidental to detention or the provision of medical, geriatric, 7
514	519		educational, counseling, religious, or similar service. 8
515	520		(3) The residence is a transitional housing or sober living facility. 9
516	521		(4) Failing to prohibit cannabis possession or consumption would violate federal 10
517	522		law or regulations or cause the landlord to lose a monetary or licensing-related 11
518	523		benefit under federal law or regulations. 12
519	524		(e) After a warning, a landlord or property manager may take action against a tenant if 13
520	525		the tenant's use of cannabis creates an odor that interferes with others' peaceful enjoyment of 14
521	526		their home or property. 15
522	527		"§ 18D-513. Contracts enforceable. 16
523	528		It is the public policy of this State that contracts related to the operation of a cannabis 17
524	529		establishment registered pursuant to this Chapter should be enforceable. It is the public policy of 18
525	530		this State that no contract entered into by a cannabis establishment or its employees or agents as 19
526	531		permitted pursuant to a valid registration, or by those who allow property to be used by a cannabis 20
527	532		establishment, its employees, or its agents as permitted pursuant to a valid registration, shall be 21
528	533		unenforceable on the basis that cultivating, obtaining, manufacturing, distributing, dispensing, 22
529	534		transporting, selling, possessing, or using cannabis or hemp is prohibited by federal law. 23
530	535		"§ 18D-514. Respecting State law. 24
531	536		(a) No law enforcement officer employed by an agency that receives State or local 25
532	537		government funds shall expend any State or local resources, including the officer's time, to effect 26
533	538		any arrest or seizure of cannabis, or conduct any investigation, on the sole basis of activity the 27
534	539		officer believes to constitute a violation of federal law if the officer has reason to believe that 28
535	540		such activity is in compliance with this Chapter, nor shall any such officer expend any State or 29
536	541		local resources, including the officer's time, to provide any information or logistical support 30
537	542		related to such activity to any federal law enforcement authority or prosecuting entity. 31
538	543		(b) No agency or political subdivision of the State may rely on a violation of federal law 32
539	544		related to cannabis as the sole basis for taking an adverse action against a person. 33
540	545		(c) For the purposes of State law, actions related to cannabis are considered lawful as 34
541	546		long as they are in accordance with this Chapter. 35
542	547		"§ 18D-515. Rulemaking. 36
543	548		(a) Not later than 180 days after the effective date of this Chapter, the Commission shall 37
544	549		adopt rules necessary for implementation of this Chapter. Such rules shall not prohibit the 38
545	550		operation of cannabis establishments, either expressly or through application, nor require such a 39
546	551		high investment of risk, money, time, or any other resource or asset that the operation of a 40
547	552		cannabis establishment is not worthy of being carried out in practice by a reasonably prudent 41
548	553		businessperson. Such regulations shall include all of the following: 42
549	554		(1) Procedures for the issuance, renewal, suspension, and revocation of a 43
550	555		registration to operate a cannabis establishment, with such procedures subject 44
551	556		to all requirements of Chapter 150B of the General Statutes. 45
552	557		(2) Rules, procedures, and policies to promote and encourage full participation in 46
553	558		the regulated cannabis industry by people from communities that have 47
554	559		previously been disproportionately harmed by cannabis prohibition and 48
555	560		enforcement and to positively impact those communities, which shall reflect 49
556	561		input from the Office of Community Reinvestment, including all of the 50
557	562		following: 51 General Assembly Of North Carolina Session 2025
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	563	+	Page 12 DRS35138-NLf-18A
559	564		a. Conducting necessary and appropriate outreach to diverse groups that 1
560	565		may qualify for participation in activities under this Chapter. 2
561	566		b. Requiring each cannabis establishment to establish and adhere to 3
562	567		policies that encourage diversity in employment, contracting, and 4
563	568		other professional opportunities. 5
564	569		c. Requiring any cannabis establishment with 25 or more employees to 6
565	570		retain a diversity officer. 7
566	571		d. Requiring each cannabis establishment to report on the diversity of its 8
567	572		workforce, management, contracts, and ownership by January 1 of 9
568	573		each year. 10
569	574		e. Issuing rules allowing community reinvestment applicants to apply 11
570	575		for, and be licensed for, cannabis establishment registrations no less 12
571	576		than 180 days prior to applicants that are not community reinvestment 13
572	577		applicants. 14
573	578		(3) A Race to the Top scoring system to make the expansion of a cannabis 15
574	579		establishment to more than two locations contingent on the cannabis 16
575	580		establishment's contributions to opportunity and to benefiting the community. 17
576	581		The system must reflect input from the Office of Community Reinvestment 18
577	582		and shall include, but need not be limited to, considerations of diversity in the 19
578	583		cannabis establishment's ownership and workforce, including in management; 20
579	584		employment of reentering citizens with prior convictions; minority 21
580	585		ownership; compensation packages and benefits for workers; investing in 22
581	586		economically disadvantaged areas; whether the cannabis establishment 23
582	587		incorporates principles of environmental resiliency or sustainability, including 24
583	588		energy efficiency; or whether the principals are community reinvestment 25
584	589		applicants. 26
585	590		(4) A limit on the number of cannabis establishments a major investor may invest 27
586	591		in, unless each additional establishment is owned and operated by a 28
587	592		community reinvestment applicant. 29
588	593		(5) A schedule of reasonable application, registration, and renewal fees, provided 30
589	594		application fees shall not exceed five thousand dollars ($5,000), with this 31
590	595		upper limit adjusted annually for inflation, unless the Commission determines 32
591	596		a greater fee is necessary to carry out its responsibilities under this Chapter. 33
592	597		(6) Qualifications for registration that are directly and demonstrably related to the 34
593	598		operation of a cannabis establishment and that may not disqualify applicants 35
594	599		solely for cannabis offenses prior to the effective date of this Chapter. 36
595	600		(7) Security requirements. 37
596	601		(8) Requirements for the transportation and storage of cannabis and cannabis 38
597	602		products by cannabis establishments. 39
598	603		(9) Requirements for the delivery of cannabis and cannabis products to 40
599	604		consumers, including a prohibition on business names, logos, and other 41
600	605		identifying language or images on delivery vehicles and a prohibition on 42
601	606		delivering to any address located on land owned by the federal government or 43
602	607		any address on land or in a building leased by the federal government. 44
603	608		(10) Employment and training requirements, including requiring that each 45
604	609		cannabis establishment create an identification badge for each employee or 46
605	610		agent. These requirements may not disqualify applicants solely for cannabis 47
606	611		offenses prior to the effective date of this Chapter. 48
607	612		(11) Requirements designed to prevent the sale or diversion of cannabis and 49
608	613		cannabis products to persons under the age of 21. 50 General Assembly Of North Carolina Session 2025
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	614	+	DRS35138-NLf-18A Page 13
610	615		(12) Requirements for cannabis and cannabis products sold or distributed by a 1
611	616		cannabis establishment, including prohibiting any misleading labeling and 2
612	617		requiring cannabis product labels to include all of the following: 3
613	618		a. The length of time it typically takes for the product to take effect. 4
614	619		b. A disclosure of ingredients and possible allergens. 5
615	620		c. A nutritional fact panel. 6
616	621		d. Requiring opaque, child-resistant packaging, which must be designed 7
617	622		or constructed to be significantly difficult for children under 5 years 8
618	623		of age to open and not difficult for normal adults to use properly as 9
619	624		defined by 16 C.F.R. § 1700.20. 10
620	625		e. Requiring that edible cannabis products be clearly identifiable, when 11
621	626		practicable, with a standard symbol indicating that they contain 12
622	627		cannabis. 13
623	628		(13) Health and safety regulations and standards for the manufacture of cannabis 14
624	629		products and both the indoor and outdoor cultivation of cannabis by cannabis 15
625	630		establishments. 16
626	631		(14) Restrictions on advertising, marketing, and signage, including, but not limited 17
627	632		to, a prohibition on mass-market campaigns that have a high likelihood of 18
628	633		reaching minors. 19
629	634		(15) Rules to create at least six tiers of cannabis cultivation facilities, based on the 20
630	635		size of the facility or the number of plants cultivated, and whether the 21
631	636		cultivation occurs outdoors, indoors, or in a greenhouse. Security regulations 22
632	637		and licensing fees must vary based on the size of the cultivation facility. 23
633	638		(16) Restrictions or prohibitions on additives to cannabis and cannabis-infused 24
634	639		products, including, but not limited to, those that are toxic or designed to make 25
635	640		the product more addictive. 26
636	641		(17) Prohibitions on products that are designed to make the product more appealing 27
637	642		to children, including prohibiting the use of any images designed or likely to 28
638	643		appeal to minors, including cartoons, toys, animals, or children, and any other 29
639	644		likeness to images, characters, or phrases that are popularly used to advertise 30
640	645		to children. 31
641	646		(18) Restrictions on the use of pesticides that are injurious to human health. 32
642	647		(19) Regulations governing visits to cannabis cultivation facilities and cannabis 33
643	648		product manufacturing facilities, including requiring the cannabis 34
644	649		establishment to log visitors. 35
645	650		(20) A definition of the amount of delta-9 tetrahydrocannabinol that constitutes a 36
646	651		single serving in a cannabis product. 37
647	652		(21) Standards for the safe manufacture of cannabis extracts and concentrates. 38
648	653		(22) Requirements that educational materials be disseminated to consumers who 39
649	654		purchase cannabis-infused products. 40
650	655		(23) Requirements for random sample testing to ensure quality control, including 41
651	656		by ensuring that cannabis and cannabis-infused products are accurately 42
652	657		labeled for potency. Unless the Commission determines that remediation or 43
653	658		treatment is sufficient to ensure product safety, the testing analysis shall 44
654	659		include testing for residual solvents, poisons, or toxins; harmful chemicals; 45
655	660		dangerous molds or mildew; filth; and harmful microbials such as E. coli or 46
656	661		salmonella and pesticides. 47
657	662		(24) Standards for the operation of cannabis testing facilities, including 48
658	663		requirements for equipment and qualifications for personnel. 49
659	664		(25) Civil penalties for the failure to comply with rules made pursuant to this 50
660	665		Chapter. 51 General Assembly Of North Carolina Session 2025
661		-	Page 14 ~~Senate Bill 350-First Edition~~
	666	+	Page 14 DRS35138-NLf-18A
662	667		(26) Procedures for collecting taxes levied on cannabis establishments. 1
663	668		(27) Requirements for on-site consumption establishments, including for security, 2
664	669		ventilation, odor control, and consumption by patrons. These rules may 3
665	670		include a prohibition on smoking indoors. 4
666	671		(b) After consulting with researchers knowledgeable about the risks and benefits of 5
667	672		cannabis and providing an opportunity for public comment, the Commission shall develop a 6
668	673		scientifically accurate safety information label, handout, or both, which shall be available to each 7
669	674		adult-use cannabis consumer. The label or handout shall include both of the following: 8
670	675		(1) Advice about the potential risks of cannabis, including any of the following: 9
671	676		a. The risks of driving under the influence of cannabis and the fact that 10
672	677		doing so is illegal. 11
673	678		b. Any adverse effects unique to younger adults, including related to the 12
674	679		developing mind. 13
675	680		c. Potential adverse events and other risks. 14
676	681		d. Risks of using cannabis during pregnancy or breastfeeding. 15
677	682		(2) The need to safeguard all cannabis and cannabis products from children and 16
678	683		pets. 17
679	684		(c) The Commission shall review and update the safety information materials at least 18
680	685		once every two years to ensure they remain accurate. The review period shall include soliciting 19
681	686		input from researchers knowledgeable about the risks and benefits of cannabis and an opportunity 20
682	687		for public comment. 21
683	688		(d) In order to ensure that individual privacy is protected, the Commission shall not 22
684	689		require a consumer to provide a retail cannabis store with personal information other than 23
685	690		government-issued identification to determine the consumer's age and a retail cannabis store shall 24
686	691		not be required to acquire and record personal information about consumers." 25
687	692		SECTION 1.1.(b) This section becomes effective January 1, 2026, and applies to 26
688	693		offenses committed on or after that date. 27
689	694		SECTION 1.2.(a) Subchapter I of Chapter 105 of the General Statutes is amended 28
690	695		by adding a new Article to read: 29
691	696		"Article 2F. 30
692	697		"Tax on Cannabis. 31
693	698		"§ 105-113.150. Definitions. 32
694	699		The definitions in G.S. 18D-101, to the extent they do not conflict with this Article, and the 33
695	700		following definitions apply in this Article: 34
696	701		(1) Cannabis. – All parts of the plant of the genus cannabis, the seeds thereof, the 35
697	702		resin extracted from any part of the plant, and every compound, manufacture 36
698	703		salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, 37
699	704		including cannabis concentrate. "Cannabis" does not include hemp, nor does 38
700	705		it include fiber produced from the stalks, oil, or cake made from the seeds of 39
701	706		the plant, or sterilized seed of the plant, which is incapable of germination. 40
702	707		(2) Cannabis concentrate. – Any form of concentration, including extracts, oils, 41
703	708		tinctures, shatter, and waxes, that is extracted from cannabis. 42
704	709		(3) Cannabis edible product. – A product containing cannabis or cannabis 43
705	710		concentrate, combined with other ingredients, that is intended for use or 44
706	711		consumption through ingestion, including sublingual or oral absorption. 45
707	712		(4) Cannabis plant material. – For purposes of this Article, "cannabis plant 46
708	713		material" means cannabis flower, cannabis trim and all parts of any plant or 47
709	714		species of the genus cannabis, or any infra specific taxon thereof, excluding a 48
710	715		growing plant, and the seeds thereof. "Cannabis plant material" does not 49
711	716		include hemp. 50 General Assembly Of North Carolina Session 2025
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	717	+	DRS35138-NLf-18A Page 15
713	718		(5) Manufacturer. – A cannabis product manufacturing facility as defined in 1
714	719		G.S. 18D-101. 2
715	720		(6) THC. – Tetrahydrocannabinol, including, but not limited to, delta-7, 3
716	721		delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol, and 4
717	722		delta-10-tetrahydrocannabinol, and any material, compound, mixture, or 5
718	723		preparation which contains their salts, isomers, and salts of isomers, whenever 6
719	724		the existence of such salts, isomers, and salts of isomers is possible within the 7
720	725		specific chemical designation, regardless of the source, except (i) dronabinol 8
721	726		substituted in sesame oil and encapsulated in a soft gelatin capsule in a federal 9
722	727		Food and Drug Administration or successor agency approved product or (ii) 10
723	728		any tetrahydrocannabinol product that has been approved by the federal Food 11
724	729		and Drug Administration or successor agency to have a medical use and 12
725	730		reclassified in any schedule of controlled substances or unscheduled by the 13
726	731		federal Drug Enforcement Administration or successor agency. 14
727	732		(7) Total THC. – The sum of the percentages by weight of tetrahydrocannabinolic 15
728	733		acid, multiplied by eight hundred seventy-seven-thousandths, plus the 16
729	734		percentage weight of THC. 17
730	735		"§ 105-113.151. Excise tax on cannabis. 18
731	736		An excise tax is levied on cannabis and cannabis products possessed by manufacturers at the 19
732	737		following rates: 20
733	738		(1) Cannabis plant material, at the rate of six hundred twenty-five-thousandths of 21
734	739		one cent (0.00625 of 1¢) per milligram of total THC, as reflected on the 22
735	740		product label. 23
736	741		(2) Cannabis edible products, at the rate of two hundred seventy-five 24
737	742		ten-thousandths of one cent (0.0275 of 1¢) per milligram of total THC, as 25
738	743		reflected on the product label. 26
739	744		(3) Cannabis, other than cannabis plant material or cannabis edible products, at 27
740	745		the rate of nine-tenths of one cent (0.9 of 1¢) per milligram of total THC, as 28
741	746		reflected on the product label. 29
742	747		"§ 105-113.152. When tax payable; revenue stamps. 30
743	748		(a) The tax imposed by this Article is payable by any manufacturer who possesses 31
744	749		cannabis or cannabis products upon which the tax has not been paid, as evidence by a stamp. The 32
745	750		tax is payable within 48 hours after the manufacturer acquires actual or constructive possession 33
746	751		of the non-tax-paid cannabis or cannabis products taxed under G.S. 105-113.151, exclusive of 34
747	752		Saturdays, Sundays, and legal holidays of this State, in which case the tax is payable on the next 35
748	753		working day. Upon payment of the tax, the manufacturer shall permanently affix the appropriate 36
749	754		stamps to the cannabis or cannabis product. Once the tax due on the cannabis or cannabis product 37
750	755		has been paid, no additional tax is due under this Article even though the cannabis or cannabis 38
751	756		product may be handled by other manufacturers. 39
752	757		(b) The Secretary shall issue stamps to affix to cannabis and cannabis products taxed 40
753	758		under G.S. 105-113.151 to indicate payment of the tax required by this Article. Manufacturers 41
754	759		shall report the taxes payable under this Article at the time and on the return prescribed by the 42
755	760		Secretary. Upon payment of the tax, the Secretary shall issue stamps in an amount equal to the 43
756	761		amount of the tax paid. Taxes may be paid, and stamps may be issued in a manner determined 44
757	762		by the Secretary. 45
758	763		"§ 105-113.153. Administration. 46
759	764		Article 9 of this Chapter applies to this Article. 47
760	765		"§ 105-113.154. Assessments. 48
761	766		Notwithstanding any other provision of law, an assessment against a manufacturer who 49
762	767		possesses cannabis or cannabis products subject to tax under this Article to which a stamp has 50
763	768		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
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	769	+	Page 16 DRS35138-NLf-18A
765	770		Secretary shall assess a tax, applicable penalties, and interest based on personal knowledge or 1
766	771		information available to the Secretary. The Secretary shall notify the manufacturer in writing of 2
767	772		the amount of the tax, penalty, and interest due, and demand shall be either mailed to the 3
768	773		manufacturer at the manufacturer's last known address or served on the manufacturer in person. 4
769	774		If the manufacturer does not pay the tax, penalty, and interest immediately upon receipt of the 5
770	775		notice and demand, the Secretary shall collect the tax, penalty, and interest pursuant to the 6
771	776		jeopardy collection procedures in G.S. 105-241.23 or the general collection procedures in 7
772	777		G.S. 105-242, including causing execution to be issued immediately against the personal 8
773	778		property of the manufacturer, unless the manufacturer files with the Secretary a bond in the 9
774	779		amount of the asserted liability for the tax, penalty, and interest. The Secretary shall use all means 10
775	780		available to collect the tax, penalty, and interest from any property in which the manufacturer 11
776	781		has a legal, equitable, or beneficial interest. The manufacturer may seek review of the assessment 12
777	782		as provided in Article 9 of this Chapter. 13
778	783		"§ 105-113.155. Confidentiality of information. 14
779	784		Information obtained by the Department in the course of administering the tax imposed by 15
780	785		this Article, including information on whether the Department has issued a revenue stamp to a 16
781	786		person, is confidential tax information and is subject to the provisions of G.S. 105-259. 17
782	787		"§ 105-113.156. Use of tax proceeds. 18
783	788		(a) Special Account. – The Cannabis Regulation Account is established as a special 19
784	789		nonreverting account. The Secretary shall credit the proceeds of the tax levied by this Article to 20
785	790		the Account. 21
786	791		(b) Distribution. – The Secretary shall distribute unencumbered tax proceeds in the 22
787	792		Cannabis Regulation Account (Account) on a quarterly or more frequent basis. Tax proceeds in 23
788	793		the Account are unencumbered when they are collectible under G.S. 105-241.22. The Secretary 24
789	794		shall distribute the unencumbered tax proceeds in the Account as follows: 25
790	795		(1) Fifty percent (50%) to the North Carolina Alcoholic Beverage Control 26
791	796		Commission for purposes consistent with the regulation of cannabis in 27
792	797		accordance with Chapter 18D of the General Statutes. 28
793	798		(2) Twenty-five percent (25%) to the Community Reinvestment and Repair Fund 29
794	799		established under Chapter 18D of the General Statutes. 30
795	800		(3) Ten percent (10%) to the Social Opportunity Fund established under Chapter 31
796	801		18D of the General Statutes. 32
797	802		(4) Three percent (3%) to the Cannabis Education and Technical Assistance Fund 33
798	803		established under Chapter 18D of the General Statutes. 34
799	804		(5) Seven percent (7%) to the Department of Health and Human Services for use 35
800	805		in evidence-based, voluntary programs for the prevention or treatment of 36
801	806		substance abuse. 37
802	807		(6) Two percent (2%) to the Department of Health and Human Services for a 38
803	808		scientifically and medically accurate public education campaign educating 39
804	809		youth and adults about the health and safety risks of alcohol, tobacco, 40
805	810		cannabis, and other substances, including the risks of driving while impaired. 41
806	811		(7) Two percent (2%) to the Department of Health and Human Services to fund 42
807	812		diverse scientific, academic, or medical research on cannabis or 43
808	813		endocannabinoids, including research exploring the benefits of cannabis, 44
809	814		provided that all funded research data, results, and papers shall be released 45
810	815		into the public domain and shall be published for free and open access by the 46
811	816		public and by other researchers. 47
812	817		(8) Up to one percent (1%) to the Department of Public Safety to fund Advanced 48
813	818		Roadside Impaired Driving Enforcement and drug recognition expert training. 49
814	819		(9) Any remaining funds shall be deposited in the General Fund." 50 General Assembly Of North Carolina Session 2025
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	820	+	DRS35138-NLf-18A Page 17
816	821		SECTION 1.2.(b) This section is effective for taxable years beginning on or after 1
817	822		January 1, 2026. 2
818	823		3
819	824		PART II. LEGALIZATION OF MEDICAL CANNABIS 4
820	825		SECTION 2.1. Chapter 90 of the General Statutes is amended by adding a new 5
821	826		Article to read: 6
822	827		"Article 44. 7
823	828		"North Carolina Medical Cannabis Act. 8
824	829		"§ 90-748. Short title. 9
825	830		This Article shall be known and may be cited as the "North Carolina Medical Cannabis Act." 10
826	831		"§ 90-749. Definitions. 11
827	832		The following definitions apply in this Article: 12
828	833		(1) Department. – The North Carolina Department of Health and Human 13
829	834		Services. 14
830	835		(2) Patient. – A person who has been issued a written certification described in 15
831	836		G.S. 90-751. 16
832	837		(3) Physician. – A person who is licensed to prescribe drugs under the laws of this 17
833	838		State. 18
834	839		"§ 90-750. Protections for the medical use of cannabis. 19
835	840		(a) A patient shall not be subject to arrest, prosecution, or penalty in any manner, or 20
836	841		denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by 21
837	842		a business or occupational or professional licensing board or bureau, for the possession or 22
838	843		purchase of cannabis for medical use by the patient if the quantity of usable cannabis possessed 23
839	844		or purchased does not exceed an adequate supply, as determined by the North Carolina Medical 24
840	845		Care Commission. 25
841	846		(b) A designated caregiver shall not be subject to arrest, prosecution, or penalty in any 26
842	847		manner, or denied any right or privilege, including imposition of a civil penalty or disciplinary 27
843	848		action by a business or occupational or professional licensing board or bureau, for the possession 28
844	849		or purchase of cannabis for medical use by the patient if the quantity of usable cannabis possessed 29
845	850		or purchased does not exceed an adequate supply for the patient, as determined by the North 30
846	851		Carolina Medical Care Commission. 31
847	852		(c) Subsection (a) of this section does not apply to a patient under 18 years of age, unless 32
848	853		all of the following criteria are met: 33
849	854		(1) The patient's physician has explained the potential risks and benefits of the 34
850	855		medical use of cannabis to the patient and to a parent, guardian, or person 35
851	856		having legal custody of the patient. 36
852	857		(2) A parent, guardian, or person having legal custody of the patient consents in 37
853	858		writing to (i) allow the patient's medical use of cannabis, (ii) serve as the 38
854	859		patient's designated caregiver, and (iii) control the dosage and frequency of 39
855	860		the medical use of cannabis by the patient. 40
856	861		(d) A patient or a designated caregiver shall be granted the full legal protections provided 41
857	862		by this Article as long as the patient or designated caregiver is in possession of a registry 42
858	863		identification card issued by the Department of Health and Human Services. If the patient or 43
859	864		designated caregiver is not in possession of a registry identification card, the individual shall be 44
860	865		given an opportunity to produce the registry identification card before the initiation of any arrest, 45
861	866		criminal charges, or other penalties. 46
862	867		(e) A patient or a designated caregiver is presumed to be engaged in the medical use of 47
863	868		cannabis if the patient or designated caregiver is in possession of a registry identification card 48
864	869		and an amount of cannabis that does not exceed the patient's adequate supply. This presumption 49
865	870		may be rebutted only by evidence that the patient or designated caregiver engaged in conduct 50 General Assembly Of North Carolina Session 2025
866		-	Page 18 ~~Senate Bill 350-First Edition~~
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867	872		related to cannabis for a purpose other than alleviating a medical condition of the patient or 1
868	873		symptoms associated with the medical condition. 2
869	874		(f) A designated caregiver may receive reimbursement for costs associated with assisting 3
870	875		a patient in the medical use of cannabis. Reimbursement for these costs does not constitute the 4
871	876		sale of a controlled substance under Article 5 of this Chapter of the General Statutes. 5
872	877		(g) A school, employer, or landlord shall neither refuse to enroll, employ, or lease to nor 6
873	878		otherwise penalize a patient or designated caregiver solely because of (i) the individual's status 7
874	879		as a patient or a designated caregiver or (ii) the presence of cannabis metabolites resulting from 8
875	880		medical use of cannabis in the individual's bodily fluids. 9
876	881		(h) For the purposes of medical care, including organ transplants, a patient's authorized 10
877	882		use of cannabis in accordance with this Article shall be treated in the same manner as the 11
878	883		authorized use of any other medication used at the direction of a physician and shall not constitute 12
879	884		the use of an illegal substance. 13
880	885		(i) A physician shall not be subject to arrest, prosecution, or penalty in any manner, or 14
881	886		denied any right or privilege, or subject to increased monitoring or disciplinary action by the 15
882	887		North Carolina Medical Board or any other business or occupational or professional licensing 16
883	888		board or bureau for either of the following: 17
884	889		(1) Advising a patient about the risks and benefits of the medical use of cannabis 18
885	890		or that the patient may benefit from the medical use of cannabis if, in the 19
886	891		physician's medical judgment, the potential benefits of the medical use of 20
887	892		cannabis would likely outweigh the health risks for that particular patient. 21
888	893		(2) Providing the patient with valid documentation, based upon the physician's 22
889	894		assessment of that patient's medical history and current medical condition, that 23
890	895		the potential benefits of the medical use of cannabis would likely outweigh 24
891	896		the health risks for that particular patient. 25
892	897		(j) A physician shall not be subject to arrest, prosecution, or penalty in any manner, or 26
893	898		denied any right or privilege, or subject to disciplinary action by a business or occupational or 27
894	899		professional licensing board or bureau for discussing with a patient the benefits or health risks of 28
895	900		the medical use of cannabis or the interaction of cannabis with other substances. 29
896	901		(k) State and local law enforcement officers shall not harm, neglect, injure, or destroy an 30
897	902		individual's interest in or right to property that is possessed, owned, or used in connection with 31
898	903		the medical use of cannabis, or acts incidental to the medical use of cannabis, while the property 32
899	904		is in the possession of State or local law enforcement officials as a result of a seizure of the 33
900	905		property in connection with the claimed medical use of cannabis. A person does not forfeit any 34
901	906		right or interest in property seized in connected with the medical use of cannabis under any 35
902	907		provision of State law providing for the forfeiture of property, unless the forfeiture is part of a 36
903	908		sentence imposed upon the person as a result of a conviction of a criminal violation of this Article 37
904	909		or entry of a plea of guilty to such violation. Cannabis, paraphernalia, or other property seized 38
905	910		from a patient or designated caregiver in connection with the claimed medical use of cannabis 39
906	911		shall be returned immediately upon the determination by a court, prosecutor, or law enforcement 40
907	912		officer that the patient or designated caregiver is entitled to the protections of this Article. In 41
908	913		making this determination, the court, a prosecutor, or a law enforcement officer shall consider as 42
909	914		evidence the failure of law enforcement officers to actively investigate the case, a decision not 43
910	915		to prosecute, the dismissal of charges, or acquittal. 44
911	916		(l) A person shall not be denied custody of, or visitation or parenting time with, a minor 45
912	917		for conduct allowed under this Article. 46
913	918		(m) There is no presumption of neglect or child endangerment for conduct allowed under 47
914	919		this Article. 48
915	920		(n) No person shall be subject to arrest or prosecution for constructive possession, 49
916	921		conspiracy, aiding and abetting, being an accessory, or any other offense, for simply being in the 50 General Assembly Of North Carolina Session 2025
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	922	+	DRS35138-NLf-18A Page 19
918	923		presence or vicinity of the medical use of cannabis as permitted under this Article or for assisting 1
919	924		a patient with using or administering cannabis. 2
920	925		(o) Possession of or application for a registry identification card shall not alone constitute 3
921	926		probable cause to search the person or the property of the person possessing or applying for a 4
922	927		registry identification card or otherwise subject the person or the person's property to inspection 5
923	928		by any government agency. 6
924	929		(p) If an individual being investigated by a law enforcement officer employed by a 7
925	930		State-funded or locally funded law enforcement agency credibly asserts during the course of the 8
926	931		investigation that the individual is a patient or designated caregiver, neither the law enforcement 9
927	932		officer nor the law enforcement agency shall provide any information, except as required by 10
928	933		federal law or the United States Constitution, from any cannabis-related investigation of the 11
929	934		individual to any law enforcement authority that does not recognize the protections of this 12
930	935		Article. Any prosecution of the individual for a violation of this Article shall be conducted 13
931	936		pursuant to the laws of this State. 14
932	937		(q) Nothing in this Article shall be construed to extend the protections of this Article to 15
933	938		any person, including a patient or designated caregiver, to allow that person to acquire, possess, 16
934	939		manufacture, produce, use, sell, distribute, dispense, or transport cannabis in a manner that is not 17
935	940		consistent with this Article. 18
936	941		"§ 90-751. Registry identification cards for patients and designated caregivers. 19
937	942		(a) The Department shall issue a registry identification card to any patient or designated 20
938	943		caregiver who meets the requirements of this section. 21
939	944		(b) The Department shall not issue or renew a registry identification card to a patient 22
940	945		under 18 years of age unless each of the following criteria is met: 23
941	946		(1) The patient's physician has explained the potential risks and benefits of the 24
942	947		medical use of cannabis to the patient and to a parent, guardian, or person 25
943	948		having legal custody of the patient. 26
944	949		(2) A parent, guardian, or person having legal custody of the patient consents in 27
945	950		writing to (i) allow the patient's medical use of cannabis, (ii) serve as one of 28
946	951		the patient's designated caregivers, and (iii) control the acquisition of the 29
947	952		cannabis, the dosage, and the frequency of medical use of cannabis by the 30
948	953		patient. 31
949	954		(c) The Department shall verify the information contained in a registry identification card 32
950	955		application or renewal application submitted pursuant to this section and shall approve or deny 33
951	956		an application or renewal application within 45 days after receipt. The Department may deny a 34
952	957		registry identification card application or renewal application only if the applicant fails to provide 35
953	958		the information required pursuant to this section or if the Department determines that the 36
954	959		application or renewal application contains false information. If the Department fails to approve 37
955	960		or deny a registration application or renewal application submitted pursuant to this section within 38
956	961		45 days after receipt, the application or renewal application shall be deemed approved and a copy 39
957	962		of the application or renewal application together with proof of receipt by the Department at least 40
958	963		45 days prior to the date this information is presented in lieu of registry identification card shall 41
959	964		be deemed a valid registry identification card. 42
960	965		(d) The Department may issue a registry identification card to a maximum of two 43
961	966		designated caregivers named in a patient's approved application. 44
962	967		(e) The Department shall issue a registry identification card to an applicant within five 45
963	968		days after approving an application or renewal application. The application or renewal 46
964	969		application expires two years after the date of issuance. 47
965	970		(f) Each registry identification card shall contain at least all of the following information: 48
966	971		(1) The date of issuance. 49
967	972		(2) The date of expiration. 50
968	973		(3) A random registry identification number. 51 General Assembly Of North Carolina Session 2025
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	974	+	Page 20 DRS35138-NLf-18A
970	975		(4) A photograph of the registry identification cardholder. 1
971	976		(g) Persons issued registry identification cards shall be subject to the following: 2
972	977		(1) A patient who has been issued a registry identification card shall notify the 3
973	978		Department of any change in the patient's name, address, or designated 4
974	979		caregiver and submit a ten dollar ($10.00) fee to the Department within 15 5
975	980		days after the change occurs. A patient who fails to notify the Department of 6
976	981		any of these changes within the specified time frame commits an infraction 7
977	982		and is subject to a fine not to exceed more than one hundred fifty dollars 8
978	983		($150.00). 9
979	984		(2) A designated caregiver shall notify the Department of any change in name or 10
980	985		address and submit a ten dollar ($10.00) fee to the Department within 15 days 11
981	986		after the change occurs. A designated caregiver who fails to notify the 12
982	987		Department of any of these changes within the specified time frame commits 13
983	988		an infraction and is subject to a fine not to exceed one hundred fifty dollars 14
984	989		($150.00). 15
985	990		(3) When a patient or designated caregiver notifies the Department of any change, 16
986	991		as required by this subsection, the Department shall issue the patient and each 17
987	992		designated caregiver a new registry identification card within 10 days after 18
988	993		receiving the updated information and the ten dollar ($10.00) fee. 19
989	994		(4) When a patient who possesses a registry identification card notifies the 20
990	995		Department of a change in designated caregiver, the Department shall notify 21
991	996		the designated caregiver of record of the change within 15 days after receiving 22
992	997		notification of the change. The protections afforded under this Article to the 23
993	998		designated caregiver of record shall expire 30 days after the designated 24
994	999		caregiver of record is notified by the Department of the change in designated 25
995	1000		caregiver. 26
996	1001		(5) If a patient or a designated caregiver loses a registry identification card, the 27
997	1002		cardholder shall notify the Department within 15 days after losing the card. 28
998	1003		The notification shall include a ten dollar ($10.00) replacement fee for a new 29
999	1004		card. Within five days after receiving notification of a lost registry 30
1000	1005		identification card, the Department shall issue the cardholder a new registry 31
1001	1006		identification card with a new random identification number. 32
1002	1007		(h) If the Department determines that a patient or designated caregiver has willfully 33
1003	1008		violated any provision of this Article, the Department may suspend or revoke the patient's or 34
1004	1009		designated caregiver's registry identification card. 35
1005	1010		(i) Applications and supporting information submitted by patients, including information 36
1006	1011		regarding their designated caregivers and physicians, are confidential and protected under the 37
1007	1012		federal Health Insurance Portability and Accountability Act of 1996. 38
1008	1013		(j) The Department shall maintain a confidential list of the persons to whom the 39
1009	1014		Department has issued registry identification cards. Individual names and other identifying 40
1010	1015		information on the list are confidential, exempt from the provisions of Chapter 132 of the General 41
1011	1016		Statutes, and are not subject to disclosure, except to authorized employees of the Department as 42
1012	1017		necessary to perform official duties of the Department. 43
1013	1018		(k) The Department shall verify to law enforcement personnel whether a registry 44
1014	1019		identification card is valid solely by confirming the validity of the random registry identification 45
1015	1020		number and the name of the person whom the Department has assigned the random registry 46
1016	1021		identification number. 47
1017	1022		(l) Any person, including an employee or official of the Department or another State 48
1018	1023		agency or local government, who breaches the confidentiality of information obtained pursuant 49
1019	1024		to this section is guilty of a Class 1 misdemeanor; however, any fine imposed for a violation 50
1020	1025		under this subsection shall not exceed one thousand dollars ($1,000). 51 General Assembly Of North Carolina Session 2025
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	1026	+	DRS35138-NLf-18A Page 21
1022	1027		(m) Nothing in this section shall be construed to prevent Department employees from 1
1023	1028		notifying law enforcement officers about falsified or fraudulent information submitted to the 2
1024	1029		Department by any individual in support of an application for a registry identification card. 3
1025	1030		(n) Article 4 of Chapter 150B of the General Statutes governs judicial review of an 4
1026	1031		administrative decision made under this section. 5
1027	1032		(o) Not later than 120 days after the effective date of this act, the North Carolina Medical 6
1028	1033		Care Commission shall adopt rules to implement the provisions of this section, including defining 7
1029	1034		what constitutes a qualifying medical condition and an adequate supply of medical cannabis. The 8
1030	1035		rules shall establish requirements for the issuance of registry identification cards to patients and 9
1031	1036		designated caregivers, which shall include at least all of the following: 10
1032	1037		(1) Written certification of a statement in a patient's medical records or a 11
1033	1038		statement signed by a physician with whom the patient has a bona fide 12
1034	1039		physician-patient relationship indicating that, in the physician's professional 13
1035	1040		opinion, the patient is likely to receive therapeutic or palliative benefit from 14
1036	1041		the medical use of cannabis to treat or alleviate the patient's qualifying medical 15
1037	1042		condition or symptoms associated with the qualifying medical condition and 16
1038	1043		the potential health benefits of the medical use of cannabis would likely 17
1039	1044		outweigh the health risks for the patient. 18
1040	1045		(2) An application for renewal fee. 19
1041	1046		(3) The name, address, and date of birth of the patient, except that if a patient is 20
1042	1047		homeless, no address is required. 21
1043	1048		(4) The name, address, and telephone number of the patient's physician. 22
1044	1049		(5) The name, address, and date of birth of each of the patient's designated 23
1045	1050		caregivers, if any." 24
1046	1051		SECTION 2.2. This Part becomes effective January 1, 2026, and applies to acts 25
1047	1052		committed on or after that date. 26
1048	1053		27
1049	1054		PART III. AUTOMATIC EXPUNCTION OF MARIJUANA OFFENSES 28
1050	1055		SECTION 3.1. Article 5 of Chapter 15A of the General Statutes is amended by 29
1051	1056		adding a new section to read: 30
1052	1057		"§ 15A-145.8B. Automatic expunction of certain marijuana offenses. 31
1053	1058		(a) If a person was charged with an offense involving marijuana or hashish that is legal 32
1054	1059		under Chapter 18D of the General Statutes, and such person was convicted, such conviction shall 33
1055	1060		be ordered to be automatically expunged no later than July 1, 2028, in the manner set forth in 34
1056	1061		this section. 35
1057	1062		(b) The Administrative Office of the Courts shall determine which offenses meet the 36
1058	1063		criteria for expunction set forth in subsection (a) of this section. Upon completing the 37
1059	1064		determination required under this subsection, the Administrative Office of the Courts shall 38
1060	1065		provide an electronic list of the offenses to the clerk of each superior court. Upon receipt of the 39
1061	1066		electronic list required under this subsection, the clerk of each superior court shall prepare an 40
1062	1067		order of expungement for each case that meets the criteria set forth in subsection (a) of this section 41
1063	1068		and was finalized in his or her court. Upon completion of the order of expungement, the court 42
1064	1069		shall order the expunction. Upon order of expungement, the clerk shall forward the petition to 43
1065	1070		the Administrative Office of the Courts. 44
1066	1071		(c) No person as to whom such an order has been entered under this section shall be held 45
1067	1072		thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 46
1068	1073		giving a false statement or response to any inquiry made for any purpose, by reason of the 47
1069	1074		person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 48
1070	1075		or trial. 49
1071	1076		(d) The court shall also order that the conviction ordered expunged under this section be 50
1072	1077		expunged from the records of the court and direct all law enforcement agencies bearing record 51 General Assembly Of North Carolina Session 2025
1073		-	Page 22 ~~Senate Bill 350-First Edition~~
	1078	+	Page 22 DRS35138-NLf-18A
1074	1079		of the same to expunge their records of the conviction. The clerk shall notify State and local 1
1075	1080		agencies of the court's order as provided in G.S. 15A-150. 2
1076	1081		(e) Any other applicable State or local government agency shall expunge from its records 3
1077	1082		entries made as a result of the conviction ordered expunged under this section. The agency shall 4
1078	1083		also reverse any administrative actions taken against a person whose record is expunged under 5
1079	1084		this section as a result of the charges or convictions expunged. This subsection shall not apply to 6
1080	1085		the Department of Justice for DNA records and samples stored in the State DNA Database and 7
1081	1086		the State DNA Databank." 8
1082	1087		SECTION 3.2. The Administrative Office of the Courts shall provide the list 9
1083	1088		required under G.S. 15A-145.8B(b), as enacted by this Part, by October 1, 2027. 10
1084	1089		SECTION 3.3. This Part becomes effective January 1, 2026. 11
1085	1090		12
1086	1091		PART IV. CONFORMING CHANGES 13
1087	1092		SECTION 4.1. G.S. 90-87(16) is repealed. 14
1088	1093		SECTION 4.2. G.S. 90-94 is repealed. 15
1089	1094		SECTION 4.3. G.S. 90-95 reads as rewritten: 16
1090	1095		"§ 90-95. Violations; penalties. 17
1091	1096		… 18
1092	1097		(b) Except as provided in subsections (h) and (i) of this section, any person who violates 19
1093	1098		G.S. 90-95(a)(1) with respect to: 20
1094	1099		… 21
1095	1100		(2) A controlled substance classified in Schedule III, IV, V, or VI or V shall be 22
1096	1101		punished as a Class I felon, except that the sale of a controlled substance 23
1097	1102		classified in Schedule III, IV, V, or VI or V shall be punished as a Class H 24
1098	1103		felon. The transfer of less than 5 grams of marijuana for no remuneration shall 25
1099	1104		not constitute a delivery in violation of G.S. 90-95(a)(1). 26
1100	1105		… 27
1101	1106		(d) Except as provided in subsections (h) and (i) of this section, any person who violates 28
1102	1107		G.S. 90-95(a)(3) with respect to: 29
1103	1108		… 30
1104	1109		(4) A controlled substance classified in Schedule VI shall be guilty of a Class 3 31
1105	1110		misdemeanor, but any sentence of imprisonment imposed must be suspended 32
1106	1111		and the judge may not require at the time of sentencing that the defendant 33
1107	1112		serve a period of imprisonment as a special condition of probation. If the 34
1108	1113		quantity of the controlled substance exceeds one-half of an ounce 35
1109	1114		(avoirdupois) of marijuana or one-twentieth of an ounce (avoirdupois) of the 36
1110	1115		extracted resin of marijuana, commonly known as hashish, the violation shall 37
1111	1116		be punishable as a Class 1 misdemeanor. If the quantity of the controlled 38
1112	1117		substance exceeds one and one-half ounces (avoirdupois) of marijuana, or 39
1113	1118		three-twentieths of an ounce (avoirdupois) of the extracted resin of marijuana, 40
1114	1119		commonly known as hashish, or if the controlled substance consists of any 41
1115	1120		quantity of synthetic tetrahydrocannabinols or tetrahydrocannabinols isolated 42
1116	1121		from the resin of marijuana, the violation shall be punishable as a Class I 43
1117	1122		felony. 44
1118	1123		… 45
1119	1124		(e) The prescribed punishment and degree of any offense under this Article shall be 46
1120	1125		subject to the following conditions, but the punishment for an offense may be increased only by 47
1121	1126		the maximum authorized under any one of the applicable conditions: 48
1122	1127		… 49
1123	1128		(8) Any person 21 years of age or older who commits an offense under 50
1124	1129		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
1125		-	~~Senate Bill 350-First Edition~~ Page 23
	1130	+	DRS35138-NLf-18A Page 23
1126	1131		or secondary school or within 1,000 feet of the boundary of real property used 1
1127	1132		for a child care center, or for an elementary or secondary school shall be 2
1128	1133		punished as a Class E felon. For purposes of this subdivision, the transfer of 3
1129	1134		less than five grams of marijuana for no remuneration shall not constitute a 4
1130	1135		delivery in violation of G.S. 90-95(a)(1). For purposes of this subdivision, a 5
1131	1136		child care center is as defined in G.S. 110-86(3)a., and that is licensed by the 6
1132	1137		Secretary of the Department of Health and Human Services. 7
1133	1138		… 8
1134	1139		(10) Any person 21 years of age or older who commits an offense under 9
1135	1140		G.S. 90-95(a)(1) on property that is a public park or within 1,000 feet of the 10
1136	1141		boundary of real property that is a public park shall be punished as a Class E 11
1137	1142		felon. For purposes of this subdivision, the transfer of less than five grams of 12
1138	1143		marijuana for no remuneration shall not constitute a delivery in violation of 13
1139	1144		G.S. 90-95(a)(1). 14
1140	1145		… 15
1141	1146		(h) Notwithstanding any other provision of law, the following provisions apply except as 16
1142	1147		otherwise provided in this Article: 17
1143	1148		(1) Any person who sells, manufactures, delivers, transports, or possesses in 18
1144	1149		excess of 10 pounds (avoirdupois) of marijuana shall be guilty of a felony 19
1145	1150		which felony shall be known as "trafficking in marijuana" and if the quantity 20
1146	1151		of such substance involved: 21
1147	1152		a. Is in excess of 10 pounds, but less than 50 pounds, such person shall 22
1148	1153		be punished as a Class H felon and shall be sentenced to a minimum 23
1149	1154		term of 25 months and a maximum term of 39 months in the State's 24
1150	1155		prison and shall be fined not less than five thousand dollars ($5,000); 25
1151	1156		b. Is 50 pounds or more, but less than 2,000 pounds, such person shall be 26
1152	1157		punished as a Class G felon and shall be sentenced to a minimum term 27
1153	1158		of 35 months and a maximum term of 51 months in the State's prison 28
1154	1159		and shall be fined not less than twenty-five thousand dollars ($25,000); 29
1155	1160		c. Is 2,000 pounds or more, but less than 10,000 pounds, such person 30
1156	1161		shall be punished as a Class F felon and shall be sentenced to a 31
1157	1162		minimum term of 70 months and a maximum term of 93 months in the 32
1158	1163		State's prison and shall be fined not less than fifty thousand dollars 33
1159	1164		($50,000); 34
1160	1165		d. Is 10,000 pounds or more, such person shall be punished as a Class D 35
1161	1166		felon and shall be sentenced to a minimum term of 175 months and a 36
1162	1167		maximum term of 222 months in the State's prison and shall be fined 37
1163	1168		not less than two hundred thousand dollars ($200,000). 38
1164	1169		…." 39
1165	1170		SECTION 4.4. G.S. 90-113.22A is repealed. 40
1166	1171		SECTION 4.5. G.S. 90-113.21 reads as rewritten: 41
1167	1172		"§ 90-113.21. General provisions. 42
1168	1173		(a) As used in this Article, "drug paraphernalia" means all equipment, products and 43
1169	1174		materials of any kind that are used to facilitate, or intended or designed to facilitate, violations of 44
1170	1175		the Controlled Substances Act, including planting, propagating, cultivating, growing, harvesting, 45
1171	1176		manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, 46
1172	1177		packaging, repackaging, storing, containing, and concealing controlled substances and injecting, 47
1173	1178		ingesting, inhaling, or otherwise introducing controlled substances into the human body. "Drug 48
1174	1179		paraphernalia" includes, but is not limited to, the following: 49
1175	1180		… 50 General Assembly Of North Carolina Session 2025
1176		-	Page 24 ~~Senate Bill 350-First Edition~~
	1181	+	Page 24 DRS35138-NLf-18A
1177	1182		(7) Separation gins and sifters for removing twigs and seeds from, or otherwise 1
1178	1183		cleaning or refining, marijuana; 2
1179	1184		… 3
1180	1185		(12) Objects for ingesting, inhaling, or otherwise introducing marijuana, cocaine, 4
1181	1186		hashish, or hashish oil cocaine into the body, such as: 5
1182	1187		a. Metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or 6
1183	1188		without screens, permanent screens, hashish heads, or punctured metal 7
1184	1189		bowls; 8
1185	1190		b. Water pipes; 9
1186	1191		c. Carburetion tubes and devices; 10
1187	1192		d. Smoking and carburetion masks; 11
1188	1193		e. Objects, commonly called roach clips, for holding burning material, 12
1189	1194		such as a marijuana cigarette, material that has become too small or 13
1190	1195		too short to be held in the hand; 14
1191	1196		…." 15
1192	1197		SECTION 4.6. G.S. 105-113.106 reads as rewritten: 16
1193	1198		"§ 105-113.106. Definitions. 17
1194	1199		The following definitions apply in this Article: 18
1195	1200		… 19
1196	1201		(3) Dealer. – Any of the following: 20
1197	1202		a. A person who actually or constructively possesses more than 42.5 21
1198	1203		grams of marijuana, seven or more grams of any other controlled 22
1199	1204		substance other than marijuana that is sold by weight, or 10 or more 23
1200	1205		dosage units of any other controlled substance that is not sold by 24
1201	1206		weight. 25
1202	1207		b. A person who in violation of Chapter 18B of the General Statutes 26
1203	1208		possesses illicit spirituous liquor for sale. 27
1204	1209		c. A person who in violation of Chapter 18B of the General Statutes 28
1205	1210		possesses mash. 29
1206	1211		d. A person who in violation of Chapter 18B of the General Statutes 30
1207	1212		possesses an illicit mixed beverage for sale. 31
1208	1213		… 32
1209	1214		(6) Marijuana. – All parts of the plant of the genus Cannabis, whether growing or 33
1210	1215		not; the seeds of this plant; the resin extracted from any part of this plant; and 34
1211	1216		every compound, salt, derivative, mixture, or preparation of this plant, its 35
1212	1217		seeds, or its resin. 36
1213	1218		…." 37
1214	1219		SECTION 4.7. G.S. 105-113.107 reads as rewritten: 38
1215	1220		"§ 105-113.107. Excise tax on unauthorized substances. 39
1216	1221		(a) Controlled Substances. – An excise tax is levied on controlled substances possessed, 40
1217	1222		either actually or constructively, by dealers at the following rates: 41
1218	1223		(1) At the rate of forty cents (40¢) for each gram, or fraction thereof, of harvested 42
1219	1224		marijuana stems and stalks that have been separated from and are not mixed 43
1220	1225		with any other parts of the marijuana plant. 44
1221	1226		(1a) At the rate of three dollars and fifty cents ($3.50) for each gram, or fraction 45
1222	1227		thereof, of marijuana, other than separated stems and stalks taxed under 46
1223	1228		subdivision (1) of this [sub]section, or synthetic cannabinoids. 47
1224	1229		(1b) At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of 48
1225	1230		cocaine. 49
1226	1231		(1c) At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of any 50
1227	1232		low-street-value drug that is sold by weight. 51 General Assembly Of North Carolina Session 2025
1228		-	~~Senate Bill 350-First Edition~~ Page 25
	1233	+	DRS35138-NLf-18A Page 25
1229	1234		(2) At the rate of two hundred dollars ($200.00) for each gram, or fraction thereof, 1
1230	1235		of any other controlled substance that is sold by weight. 2
1231	1236		(2a) At the rate of fifty dollars ($50.00) for each 10 dosage units, or fraction 3
1232	1237		thereof, of any low-street-value drug that is not sold by weight. 4
1233	1238		(3) At the rate of two hundred dollars ($200.00) for each 10 dosage units, or 5
1234	1239		fraction thereof, of any other controlled substance that is not sold by weight. 6
1235	1240		(a1) Weight. – A quantity of marijuana or other controlled substance is measured by the 7
1236	1241		weight of the substance whether pure or impure or dilute, or by dosage units when the substance 8
1237	1242		is not sold by weight, in the dealer's possession. A quantity of a controlled substance is dilute if 9
1238	1243		it consists of a detectable quantity of pure controlled substance and any excipients or fillers. 10
1239	1244		…." 11
1240	1245		SECTION 4.8. G.S. 105-113.107A reads as rewritten: 12
1241	1246		"§ 105-113.107A. Exemptions. 13
1242	1247		(a) Authorized Possession. – The tax levied in this Article does not apply to a substance 14
1243	1248		in the possession of a dealer who is authorized by law to possess the substance. This exemption 15
1244	1249		applies only during the time the dealer's possession of the substance is authorized by law. 16
1245	1250		(b) Certain Marijuana Parts. – The tax levied in this Article does not apply to the 17
1246	1251		following marijuana: 18
1247	1252		(1) Harvested mature marijuana stalks when separated from and not mixed with 19
1248	1253		any other parts of the marijuana plant. 20
1249	1254		(2) Fiber or any other product of marijuana stalks described in subdivision (1) of 21
1250	1255		this subsection, except resin extracted from the stalks. 22
1251	1256		(3) Marijuana seeds that have been sterilized and are incapable of germination. 23
1252	1257		(4) Roots of the marijuana plant." 24
1253	1258		SECTION 4.9. G.S. 105-113.108(b)(1) is repealed. 25
1254	1259		SECTION 4.10. G.S. 106-134(4) reads as rewritten: 26
1255	1260		"(4) If it is for use by man and contains any quantity of the narcotic or hypnotic 27
1256	1261		substance alphaeucaine, barbituric acid, betaeucaine, bromal, cannabis, 28
1257	1262		carbromal, chloral, coca, cocaine, codeine, heroin, marijuana, morphine, 29
1258	1263		opium, paraldehyde, peyote, or sulphonmethane; or any chemical derivative 30
1259	1264		of such substances, which derivative has been by the Board after investigation, 31
1260	1265		found to be, and by regulations under this Article, designated as, habit 32
1261	1266		forming; unless its label bears the name and quantity or proportion of such 33
1262	1267		substance or derivative and in juxtaposition therewith the statement "Warning 34
1263	1268		– May be habit forming."" 35
1264	1269		SECTION 4.11. G.S. 148-64.1(a)(2)e. is repealed. 36
1265	1270		SECTION 4.12. G.S. 90-94.1 is repealed. 37
1266	1271		SECTION 4.13. This Part becomes effective January 1, 2026, and applies to offenses 38
1267	1272		committed on or after that date. 39
1268	1273		40
1269	1274		PART V. SAVINGS CLAUSE, SEVERABILITY CLAUSE, AND EFFECTIVE DATE 41
1270	1275		SECTION 5.1. Prosecutions for offenses committed before the effective date of this 42
1271	1276		act are not abated or affected by this act, and the statutes that would be applicable but for this act 43
1272	1277		remain applicable to those prosecutions. 44
1273	1278		SECTION 5.2. If any provision of this act or its application is held invalid, the 45
1274	1279		invalidity does not affect other provisions or applications of this act that can be given effect 46
1275	1280		without the invalid provisions or application and, to this end, the provisions of this act are 47
1276	1281		severable. 48
1277	1282		SECTION 5.3. Except as otherwise provided in this act, this act is effective when it 49
1278	1283		becomes law. 50