Marijuana Legalization and Reinvestment Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 413

Short Title: Marijuana Legalization and Reinvestment Act. (Public)
Sponsors: Representatives Lopez, Dew, Hawkins, and Harrison (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
March 18, 2025
*H413-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO LEGALIZE A ND REGULATE THE SALE , POSSESSION, AND US E OF 2
CANNABIS IN NORTH CAROLINA. 3
The General Assembly of North Carolina enacts: 4
5
PART I. LEGALIZATION OF POSSESSION AND SALE OF CANNABIS 6
SECTION 1.1. The General Statutes are amended by adding a new Chapter to read: 7
"Chapter 18D. 8
"Regulation of Cannabis. 9
"Article 1. 10
"General Provisions. 11
"§ 18D-100. Findings. 12
The General Assembly finds all of the following: 13
(1) Cannabis prohibition, like alcohol prohi bition before it, has been a wasteful 14
and destructive failure. About half of Americans admit to having used 15
cannabis despite more than eight decades of prohibition. 16
(2) Regulating cannabis similarly to alcohol will replace the uncontrolled illicit 17
market w ith a well -regulated system. Legalization allows regulation and 18
control to protect consumers, workers, communities, and the environment. 19
(3) The prohibition of cannabis has had an unfair, disparate impact on persons 20
and communities of color. A 2020 report by the American Civil Liberties 21
Union found black individuals are three and six-tenths times as likely as white 22
individuals to be arrested for cannabis possession, despite nearly identical use 23
rates. 24
(4) The prohibition of cannabis diverts law enforcement resources from violent 25
and property crimes and subjects civilians to unnecessary police interactions. 26
(5) Keeping cannabis illegal deprives the State of thousands of legal jobs and 27
hundreds of millions of dollars in tax revenue. 28
(6) The use of cannabis sho uld be legal for persons 21 years of age or older and 29
subject to taxation and regulation in a manner that does all of the following: 30
a. Controls the production and distribution of cannabis under a system of 31
licensing, regulation, and taxation. 32
b. Includes lab testing, potency labeling, secure packaging, restrictions 33
on advertising, and education about responsible use and risks. 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 413-First Edition
c. Fosters a responsible industry, whereby businesses will only be 1
allowed to expand if they prioritize diversity, good wages, 2
sustainability, and community investment. 3
d. Promotes the participation of individuals most impacted by cannabis 4
prohibition in the legal, regulated industry. 5
e. Generates needed revenue, including to reinvest in communities that 6
have been disproportionately impacted by prohibition, for substance 7
abuse treatment and education, and to train more law enforcement 8
officers to detect impaired driving. 9
(7) It is necessary to ensure consistency and fairness in the application of this 10
Chapter throughout the State and that, therefore, the matters addressed by this 11
Chapter are, except as specified herein, matters of statewide concern. 12
"§ 18D-101. Definitions. 13
Unless the context requires otherwise, the following definitions apply in this Chapter: 14
(1) Cannabis. – All parts of the plant of the genus cannabis, the seeds thereof, the 15
resin extracted from any part of the plant, and every compound, manufacture, 16
salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, 17
including cannabis concentrate. "Cannabis" does not include hemp, nor does 18
it include fiber produced from the stalks, oil or cake made from the seeds of 19
the plant, or sterilized seed of the plant, which is incapable of germination. 20
(2) Cannabis accessories. – Any equipment, products, or materials of any kind 21
that are used, intended for use, or designed for use in planting, propagating, 22
cultivating, growing, harvesting, composting, manufacturing, compounding, 23
converting, producing, processing, preparing, testing, analyzing, packaging, 24
repackaging, storing, vaporizing, or containing cannabis, or for ingesting, 25
inhaling, or otherwise introducing cannabis into the human body. 26
(3) Cannabis cultivation facility. – An entity registered to cultivate, prepare, and 27
package cannabis and sell cannabis to other cannabis establishments but not 28
to consumers. A cannabis cultivation facility may not produce cannabis 29
concentrates, tinctures, extracts, or other cannabis products unless it is also 30
licensed as a cannabis product manufacturing facility. 31
(4) Cannabis delivery service. – An entity registered to deliver cannabis to 32
consumers. 33
(5) Cannabis establishment. – A cannabis cultivation facility, a cannabis delivery 34
service, an on -site consumption establishment, a cannabis testing facility, a 35
cannabis produc t manufacturing facility, a cannabis transporter, a retail 36
cannabis store, or any other type of cannabis business authorized and 37
registered by the Department. 38
(6) Cannabis product manufacturing facility. – An entity registered to purchase 39
cannabis; manufac ture, prepare, and package cannabis products; and sell 40
cannabis and cannabis products to other cannabis establishments but not to 41
consumers. 42
(7) Cannabis products. – Products that are comprised of cannabis, cannabis 43
concentrate, or cannabis extract and other ingredients and are intended for use 44
or consumption, such as, but not limited to, edible products, ointments, and 45
tinctures. 46
(8) Cannabis testing facility. – An entity registered to test cannabis for potency 47
and contaminants. 48
(9) Cannabis transporter. – An entity registered to transport cannabis between 49
cannabis establishments. 50
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House Bill 413-First Edition Page 3
(10) Consumer. – A person 21 years of age or older who purchases cannabis or 1
cannabis products for personal use by persons 21 years of age or older, but not 2
for resale. 3
(11) Department. – The Department of Public Safety. 4
(12) Hemp. – The plant of the genus cannabis and any part of such plant, whether 5
growing or not, with a delta -9 tetrahydrocannabinol concentration that does 6
not exceed three-tenths percent (0.3%) on a dry weight basis of any part of the 7
plant cannabis, or per volume or weight of cannabis product, or the combined 8
percent of delta -9 tetrahydrocannabinol and tetrahydrocannabinolic acid in 9
any part of the cannabis plant regardless of moisture content. 10
(13) Locality. – A city or county. 11
(14) Office. – The Office of Community Reinvestment. 12
(15) On-site consumption establishment. – An entity registered to sell cannabis or 13
cannabis products for on-site consumption. 14
(16) Possession limit. – Any of the following amounts: 15
a. Two ounces of cannabis in a form other than concentrated cannabis or 16
cannabis products. 17
b. Fifteen grams of concentrated cannabis. 18
c. Cannabis products containing no more than 2,000 milligrams of 19
tetrahydrocannabinol. 20
d. Six cannabis plants. 21
e. Any addi tional cannabis produced by the person 's cannabis plants 22
provided that the possession of any amount of cannabis in excess of 2 23
ounces of cannabis, 15 grams of concentrated cannabis, and cannabis 24
products containing no more than 2,000 milligrams of 25
tetrahydrocannabinol must be limited to the same property where the 26
plants were cultivated. 27
(17) Public place. – Any place to which the general public has access. It does not 28
include an on-site consumption establishment. 29
(18) Retail cannabis store. – An entity registered to purchase cannabis from 30
cannabis establishments and sell cannabis and cannabis products to 31
consumers. 32
"§ 18D-102. Applicability. 33
This Chapter does not apply to medical cannabis regulated under Article 43 of Chapter 90 of 34
the General Statutes. 35
"Article 2. 36
"Office of Community Reinvestment. 37
"§ 18D-200. Creation of the Office of Community Reinvestment. 38
There is established in the Department the Office of Community Reinvestment . The 39
Governor shall appoint an Executive Director of the Office, who shall have at least five years of 40
experience in civil rights advocacy, civil rights litigation, or social justice. 41
"§ 18D-201. Establishment of funds. 42
(a) The following funds are established in the Department: 43
(1) The Community Reinvestment and Repair Fund. 44
(2) The Cannabis Enterprise Opportunity Fund. 45
(3) The Cannabis Education and Technical Assistance Fund. 46
(b) No later than July 1 of each year, the Office shall produce and make publicly available 47
a report on how the Community Reinvestment and Repair Fund, Cannabis Enterprise 48
Opportunity Fund, and Cannabis Education and Technical Assistance Fund were allocated during 49
the prior fiscal year. 50
General Assembly Of North Carolina Session 2025
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(c) No later than November 1 of each year, the Office shall solicit public input on the 1
uses of the Community Reinvestment and Repair Fund, Cannabis Enterprise Opportunity Fund, 2
and Cannabis Education and Technical Assistance Fund. The Office of Community 3
Reinvestment shall publish a review of feedback received no later than December 15 of each 4
year. 5
"§ 18D-202. Powers and duties of the Office. 6
The Office shall promote and encourage full participation in the regulated cannabis industry 7
by people from communities that have previously been disproportionately harmed by cannabis 8
prohibition and enforcement in order to positively impact those communities. The Office shall 9
have all of the following powers and duties: 10
(1) Defining, by rule, the term "historically impacted applicant" and considering 11
whether the definition should include any or all of the following: 12
a. Individuals with past convictions for a cannabis offense. 13
b. Individuals whose parent had a prior conviction for a cannabis offense. 14
c. Individuals who have had a less than honorable discharge from the 15
military due to cannabis. 16
d. Individuals from census tracts or other geographic areas 17
disproportionately impacted by cannabis enforcement, poverty, 18
unemployment, cannabis prohibition, mass incarceration, or systemic 19
racism. 20
e. Racial and ethnic minorities that have been disproportionately 21
impacted by cannabis enforcement. 22
f. Racial and ethnic minorities that have been disproportionately 23
excluded from the legal cannabis industry. 24
(2) Administering the Community Reinvestment and Repair Fund to improve the 25
well-being of individuals and communities that have experienced a 26
disproportionate negative impact from poverty, unemployment, cannabis 27
prohibition and enforcement, mass incarceration, or systemic racism. Before 28
determining how funds from the Community Reinvestment and Repair Fund 29
will be allocated, the Office shall promote and hold public meetings in at least 30
10 of the census tract areas that have been significantly impacted by poverty, 31
unemployment, cannabis prohibition, mass incarceration, or systemic racism 32
to seek input on the communities ' needs and priorities for the Community 33
Reinvestment and Repair Fund. The Office of Community Reinvestment shall 34
distribute funds from the Community Reinvestment and Repair Fund in a 35
manner that improves the well-being of communities and individuals that have 36
been significantly impacted by poverty, unemployment, cannabis prohibition, 37
mass incarceration, or systemic racism. Permissible uses of the fund include , 38
but are not limited to , grants to nonprofit organizations or allocations to 39
government agencies for any of the following: 40
a. Housing assistance, including to promo te home ownership among 41
members of minority groups that are underrepresented in home 42
ownership due to redlining or discrimination. 43
b. Reentry services, including job training and placement. 44
c. Scholarship assistance for low-income students. 45
d. Grants to community-based organizations to provide services to 46
prevent violence, support youth development, provide early 47
intervention for youth and families, and promote community stability 48
and safety. 49
e. Legal or civic aid. 50
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(3) Administering the Cannabis Enterpris e Opportunity Fund to issue 1
zero-interest loans and grants to historically impacted applicants and cannabis 2
establishments owned and operated by historically impacted applicants. 3
(4) Administering the Cannabis Education and Technical Assistance Fund to 4
provide free or low -cost training, education, and technical assistance for 5
individuals working in the cannabis industry or owning a cannabis 6
establishment, with a focus on individuals who would qualify as historically 7
impacted applicants. 8
(5) Advising the Dep artment regarding regulations, including advising against 9
implementing regulations and financial requirements that unnecessarily 10
impose financial burdens that undermine the purposes of this Chapter and 11
providing recommendations on regulations related to di versity, historically 12
impacted applications, and the Race to the Top scoring system. 13
(6) Producing reports and recommendations on diversity and equity in the legal 14
cannabis economy, including in ownership, management, and employment. 15
(7) Investigating whether businesses are adhering to their obligations, including 16
those undertaken as part of the Race to the Top scor ing system, and 17
recommending corrective action or discipline if they fail to do so, which may 18
include a suspension or revocation of licenses. 19
"Article 3. 20
"Registration and Licensure. 21
"§ 18D-300. Registration with the Department. 22
(a) Each application or renewal application for an annual registration to operate a 23
cannabis establishment shall be submitted to the Department. A renewal application may be 24
submitted up to 90 days prior to the expiration of the cannabis establishment's registration. 25
(b) The Department shall begin accepting and processing applications to operate cannabis 26
establishments from historically impacted applicants one year aft er the effective date of this 27
Chapter. 28
(c) The Department may begin accepting and processing applications to operate cannabis 29
establishments from applicants other than historically impacted applicants no earlier than one 30
year and 180 days after the effective date of this Chapter. 31
(d) Upon receiving an application or renewal application for a cannabis establishment, 32
the Department shall immediately forward a copy of each application and half of the registration 33
application fee to the local regulatory authority for the locality in which the applicant desires to 34
operate the cannabis establishment, unless the locality has not designated a local regulatory 35
authority. 36
(e) Within 120 days after receiving an application or renewal application, the Department 37
shall i ssue an annual registration or a conditional registration to the applicant, unless the 38
Department finds the applicant is not in compliance with rules enacted by the Department or the 39
Department is notified by the relevant locality that the applicant is not in compliance with 40
ordinances and regulations in effect at the time of application. 41
(f) Applicants may apply for conditional approval if they have not purchased or leased 42
the property where their cannabis establishment would be located. If the applicant i s otherwise 43
qualified, the Department shall provide conditional approval. Once the applicant provides the 44
Department with a completed, supplemental application that includes the premises, the 45
Department shall forward the information to the local regulatory authority and approve or reject 46
the final application within 45 days from the date of submission. 47
(g) Upon denial of an application, the Department shall notify the applicant in writing of 48
the specific reason for its denial. 49
(h) Cannabis establishments, and the books and records maintained and created by 50
cannabis establishments, are subject to inspection by the Department. 51
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"§ 18D-301. Licensure and local control. 1
(a) An on -site consumption establishment shall only operate if the local regulatory 2
authority in the locality where it is located issued a permit, license, or registration that expressly 3
allows the operation of the on-site consumption establishment. 4
(b) Except as provided in this subsection, a locality may prohibit the operation of any or 5
all types of cannabis establishments within its jurisdiction through the enactment of an ordinance. 6
A locality's prohibition on cannabis establishments shall not prohibit transportation through the 7
locality or deliveries within the locality by cannabis establishments located in other jurisdictions. 8
(c) A locality may enact ordinances or regulations not in conflict with this Chapter, or 9
with rules enacted pursuant to this Chapter, governing the time, place, manner, and number of 10
cannabis establishment operations. A locality may establish civil penalties for violation of an 11
ordinance or regulations governing the time, place, and manner of a cannabis establishment that 12
may operate in such locality. 13
(d) No locality may negotiate or enter into a host community agreement with a cannabis 14
establishment or a cannabis establishment applicant. As used in this subsection, a "host 15
community agreement" means an agreement that the cannabis establishment or applicant provide 16
monies, donations, in-kind contributions, services, or anything of value to the locality. 17
"Article 4. 18
"Possession and Use of Cannabis. 19
"§ 18D-400. Personal use of cannabis. 20
Notwithstanding any other provision of law, except as otherwise provided in this Chapter, 21
the following acts are not unlawful and shall not be a criminal or civil offense under State law or 22
an ordinance of any locality, or be a basis for seizure or forfeiture of assets under State law , for 23
persons 21 years of age or older: 24
(1) Possessing, consuming, ingesting, smoking, growing, using, processing, 25
purchasing, or transporting an amount of cannabis that does not exceed the 26
possession limit. 27
(2) Transferring an amount of cannabis that does not exceed the possession limit 28
to a person who is 21 years of age or older without remuneration. 29
(3) Controlling property where actions described by this section occur. 30
(4) Assisting another person who is 21 years of age or older in any of the acts 31
described in this section. 32
"§ 18D-401. Restrictions on personal cultivation; penalty. 33
(a) It is unlawful to cultivate cannabis plants in any of the following ways: 34
(1) Cannabis plants may not be cultivated in a location where the plants are 35
subject to public view, including view from another private property, without 36
the use of binoculars, aircraft, or other optical aids. 37
(2) A person who cultivates cannabis must take reasonable precautions to ensure 38
the plants are secure from unauthorized access and access by a person under 39
21 years of age. For purpo ses of illustration and not limitation, cultivating 40
cannabis in an enclosed, locked space that persons under 21 years of age do 41
not possess a key to constitutes reasonable precautions. 42
(3) Cannabis cultivation may only occur on property lawfully in possession of the 43
cultivator or with the consent of the person in lawful possession of the 44
property. 45
(b) A person who violates subsection (a) of this section is guilty of an infraction, 46
punishable by a fine of up to seven hundred fifty dollars ($750.00) or up to 75 hours of 47
community service. 48
"§ 18D-402. Public smoking prohibited; penalty. 49
(a) It is unlawful to smoke cannabis in a public place. 50
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(b) It is unlawful to smoke cannabis in an area of an on -site consumption establishment 1
where cannabis smoking is prohibited. 2
(c) A person who violates this section is guilty of an infraction, punishable by a fine of 3
up to fifty dollars ($50.00) or up to five hours of community service. 4
"§ 18D-403. Consuming cannabis while operating a moving vehicle prohibited; penalty. 5
(a) No person shall consume cannabis while operating or driving a motor vehicle, boat, 6
vessel, aircraft, or other motorized device used for transportation. 7
(b) Unless the conduct is covered under some other provision of law providing greater 8
punishment, a person who violates subsection (a) of this section, and only consumed cannabis, 9
is guilty of an infraction, punishable as follows: 10
(1) For a first offense, any or all of the following: 11
a. A fine of not more than two hundred fifty dollars ($250.00). 12
b. Not more than 25 hours of community service. 13
c. Suspension of the person's drivers license for up to six months. 14
(2) For a second or subsequent offense, any or all of the following: 15
a. A fine of not more than five hundred dollars ($500.00). 16
b. Not more than 50 hours of community service. 17
c. Suspension of the person's drivers license for up to one year. 18
"§ 18D-404. False identification; penalty. 19
(a) A person who is under 21 years of age may not present or offer to a cannabis 20
establishment or the cannabis establishment's agent or employee any written or oral evidence of 21
age that is false, fraudulent, or not actually the minor's own for either of the following purposes: 22
(1) Purchasing, attempting to purchase, or otherwise procuring or attempting to 23
procure cannabis. 24
(2) Gaining access to a cannabis establishment. 25
(b) A person who violates this section is guilty of an infraction, punishable by a fine of 26
not more than one hundred fifty dollars ($150.00) or up to 15 hours of community service. 27
"§ 18D-405. Unlawful cannabis extraction; penalty. 28
(a) No person, other than a cannabis product manufacturing facility complying with this 29
Chapter and Department rules, may perform solvent-based extractions on cannabis using solvents 30
other than water, glycerin, propylene glycol, vegetable oil, or food-grade ethanol. 31
(b) No person may extract compounds from cannabis using ethanol in the presence or 32
vicinity of open flame. 33
(c) A person who violates this section is guilty of a Class E felony, which shall include a 34
fine of not more than five thousand dollars ($5,000). 35
"§ 18D-406. Cannabis accessories authorized. 36
(a) Except as provided in this section, notwithstanding any other provision of law, it is 37
not unlawful and shall not be an offense under State law or an ordinance of any locality, or be a 38
basis for seizure or forfeiture of assets under State law, for persons 21 years of age or older to 39
manufacture, possess, possess with intent to distribute, or purchase cannabis accessories or to 40
distribute or sell cannabis accessories to a person who is 21 years of age or older. 41
(b) Except as provided in this section, a person who is 21 years of age or older is 42
authorized to manufacture, possess, and purchase cannabis accessories and to distribute or sell 43
cannabis accessories to a person who is 21 years of age or older. This section is intended to meet 44
the requirements of section 863 of Title 21 of the United States Code by authorizing, under State 45
law, any person in compliance with this Chapter to manufacture, possess, or distribute cannabis 46
accessories. 47
(c) No person may manufacture, distribute, or sell cannabis accessories that violate rules 48
adopted by the Department. A first offense under this section is an infraction, punishable by a 49
fine of up to one thousand dollars ($1,000) and forfeiture of the cannabis accessories. A second 50
or subsequent offense of this section is a Class A1 misdemeanor punishable by a fine of up to 51
General Assembly Of North Carolina Session 2025
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five thousand dollars ( $5,000), up to 180 days in jail, or both , and forfeiture of the cannabis 1
accessories. 2
"§ 18D-407. Purchasing of cannabis or cannabis accessories unlawful in certain cases; 3
penalties; treatment and education programs and services. 4
(a) No person to whom cannabis or cannabis accessories may not lawfully be sold under 5
this Chapter shall consume, purchase, or possess, or attempt to consume, purchase, or possess, 6
any cannabis or cannabis accessories. 7
(b) Any person 18 years of age or older who violates subsection (a) of this section is 8
guilty of an infraction, punishable by a fine of up to tw enty-five dollars ($25.00) or up to five 9
hours of community service. Additionally, the person shall be ordered to enter a substance abuse 10
treatment or education program or both, if available, that in the opinion of the court best suits the 11
needs of the person. 12
(c) Any juvenile who violates subsection (a) of this section is guilty of a n infraction, 13
punishable by a fine of up to twenty -five dollars ($25.00) or up to five hours of community 14
service. Additionally, the juvenile shall be ordered to enter a substance a buse treatment or 15
education program or both, if available, that in the opinion of the court best suits the needs of the 16
juvenile. 17
"§ 18D-408. Nondiscrimination for personal use of cannabis. 18
(a) A person shall not be subject to arrest, prosecution, or pena lty in any manner, or be 19
denied any right or privilege, including , but not limited to , disciplinary action by a business, 20
occupational, or professional licensing board or bureau, solely for conduct permitted under this 21
Chapter. 22
(b) Except as provided in this section, neither the State nor any of its political 23
subdivisions may impose any penalty or deny any benefit or entitlement for conduct permitted 24
under this Chapter or for the presence of cannabinoids or cannabinoid metabolites in the urine, 25
blood, saliva, breath, hair, or other tissue or fluid of a person who is 21 years of age or older. 26
(c) Except as provided in this section, the State nor any of its political subdivisions ma y 27
deny a drivers license, a professional license, housing assistance, social services, or other benefits 28
based on cannabis use or for the presence of cannabinoids or cannabinoid metabolites in the 29
urine, blood, saliva, breath, hair, or other tissue or fluid of a person who is 21 years of age or 30
older. 31
(d) Notwithstanding any provis ion of law to the contrary, a person shall not be denied 32
custody of or visitation with a minor for acting in accordance with this Chapter, unless the 33
person's behavior is such that it creates an unreasonable danger to the minor that can be clearly 34
articulated and substantiated. 35
(e) Except as provided in this section, neither the State nor any of its political 36
subdivisions may deny employment or a contract to a person for engaging in conduct permitted 37
under this Chapter for a prior conviction for a nonviolent cannabis offense that does not involve 38
distribution to minors, or for testing positive for the presence of cannabinoids or cannabinoid 39
metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of the individual 's 40
body. 41
(f) For the purposes of medical care, including organ and tissue transplants, the use of 42
cannabis does not constitute the use of an illicit substance or otherwise disqualify a person from 43
needed medical care and may only be considered with respect to evidence-based clinical criteria. 44
(g) Notwithstanding any provision of law to the contrary, unless there is a specific finding 45
that the individual 's use, cultivation, or possession of cannabis could create a danger to the 46
individual or another person, it shall not be a violation of conditions of parole, probation, or 47
pretrial release to do either of the following: 48
(1) Engage in conduct allowed by this Chapter. 49
(2) Test positive for cannabis, delta -9 tetrahydrocannabinol, or any other 50
cannabinoid or metabolite of cannabis. 51
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(h) This section does not do any of the following: 1
(1) Prevent a government employer from disciplining an employee or contractor 2
for ingesting cannabis in the workplace or for working while impaired by 3
cannabis. 4
(2) Apply to the extent that they conflict with a governmental employer 's 5
obligations under federal law or regulations or to the extent that they would 6
disqualify the entity from a monetary or licensing-related benefit under federal 7
law or regulations. 8
(3) Authorize any person to engage in, and does not prevent the imposition of any 9
civil, criminal, discipline, or other penalties, including discipline or 10
termination by a governmental employer, any task while under the influence 11
of cannabis, when doing so would constitute negligence or professional 12
malpractice. 13
"§ 18D-409. Lawful operation of cannabis-related facilities. 14
(a) Notwithstanding any other provision of law, engaging in any activities involving 15
cannabis, cannabis accessories, or cannabis products, if the person conducting the activities has 16
obtained a current, valid registration to operate a cannabis establishment or is acting in his or her 17
capacity as an owner, employee, or agent of a registered cannabis establishment and the activities 18
are within the scope of activities allowed by the Department for that type of cannabis 19
establishment, is not unlawful and shall not be an offense under State law or be a basis for seizure 20
or forfeiture of assets under State law. 21
(b) Nothing in this section prevents the imposition of penalties for violating this Chapter 22
or rules adopted by the Department or localities pursuant to this Chapter. 23
"§ 18D-410. Verifying the age of cannabis consumers. 24
(a) A cannabis establishment or an agent or staffer of a cannabis establishment may not 25
sell, deliver, distribute, give, transfer, or otherwise furnish cannabis to a person under the age of 26
21. 27
(b) Except as otherwise provided in this section, in a prosecution for selling, transferring, 28
delivering, distributing, giving, or otherwise furnishing cannabis, cannabis products, or cannabis 29
accessories to any person who is under 21 years of age, it is a complete defense if both of the 30
following requirements are met: 31
(1) The person who sold, gave, or otherwise furnished cannabis, cannabis 32
products, or cannabis accessories was a retail cannabis store or on -site 33
consumption establishment or was acting in his or her capacity as an owner, 34
employee, or agent of a retail cannabis store or on -site consumption 35
establishment at the time th e cannabis, cannabis products, or cannabis 36
accessories were sold, given, or otherwise furnished to the person. 37
(2) Before selling, giving, or otherwise furnishing cannabis, cannabis products, 38
or cannabis accessories to a person who is under 21 years of age , the person 39
who sold, gave, or otherwise furnished the cannabis or cannabis accessories, 40
or a staffer or agent of the retail cannabis store, was shown a document that 41
appeared to be issued by an agency of a federal, state, tribal, or foreign 42
sovereign government and that indicated that the person to whom the cannabis 43
or cannabis accessories were sold, given, or otherwise furnished was 21 years 44
of age or older at the time the cannabis or cannabis accessories w ere sold, 45
given, or otherwise furnished to the person. 46
(c) Subsection (b) of this section does not apply if both of the following requirements are 47
met: 48
(1) The document that was shown to the person who sold, gave, or otherwise 49
furnished the cannabis, cannabis products, or cannabis accessories was 50
counterfeit, forged, altered, or issued to a person other than the person to 51
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whom the cannabis, cannabis products , or cannabis accessories w ere sold, 1
given, or otherwise furnished. 2
(2) Under the circumstances, a reasonable person would have known or suspected 3
that the document was counterfeit, forged, altered, or issued to a person other 4
than the person to whom the cannabis, cannabis products, or cannabis 5
accessories were sold, given, or otherwise furnished. 6
"§ 18D-411. Occupational licensing. 7
(a) A holder of a professional or occupational license may not be subject to professional 8
discipline for providing advice or services related to cannabis establishments or applications to 9
operate cannabis establishments on the basis that cannabis is illegal under federal law. 10
(b) An applicant for a professional or occupational license may not be denied a license 11
based on previous employment related to cannabis establishments operating in accordance with 12
State law. 13
"§ 18D-412. Private property and tenant rights. 14
(a) Except as provided in this section, the provisions of this Chapter do not require any 15
person, corporation, or any other entity that occupies, owns, or controls a property to allow the 16
consumption, cultivation, display, sale, or transfer of cannabis on or in that property. 17
(b) Except as provided in this section, a landlord or property manager may not refuse to 18
rent to a tenant, or otherwise discriminate against the tenant, based on a past conviction for a 19
cannabis offense. 20
(c) Except as provided in this section, i n the case of the rental of a residential dwelling, 21
a landlord or property manager may not prohibit the possession of cannabis or the consumption 22
of cannabis by nonsmoked means. 23
(d) Subsections (a) through (c) of this section do not apply if any of the fol lowing 24
requirements are met: 25
(1) The tenant is not leasing the entire residential dwelling. 26
(2) The residence is incidental to detention or the provision of medical, geriatric, 27
educational, counseling, religious, or similar service. 28
(3) The residence is a transitional housing or sober living facility. 29
(4) Failing to prohibit cannabis possession or consumption would violate federal 30
law or regulations or cause the landlord to lose a monetary or licensing-related 31
benefit under federal law or regulations. 32
(e) After a warning, a landlord or property manager may take action against a tenant if 33
the tenant's use of cannabis creates an odor that interferes with others ' peaceful enjoyment of 34
their home or property. 35
"§ 18D-413. Contracts enforceable. 36
It is the public policy of this State that contracts related to the operation of a cannabis 37
establishment registered pursuant to this Chapter should be enforceable. It is the public policy of 38
this State that no contract entered into by a cannabis establishment or its employees or agents as 39
permitted pursuant to a valid registration, or by those who allow property to be used by a cannabis 40
establishment, its employees, or its agents as permitted pursuant to a valid registration, shall be 41
unenforceable on the basis that cultivating, obtaining, manufacturing, distributing, dispensing, 42
transporting, selling, possessing, or using cannabis or hemp is prohibited by federal law. 43
"§ 18D-414. Respecting State law. 44
(a) No law enforcement officer employed by an agency that receives State or local 45
government funds shall expend any State or local resources, including the officer's time, to effect 46
any arrest or seizure of cannabis, or conduct any investigation, on the sole basis of activity the 47
officer believes to constitu te a violation of federal law if the officer has reason to believe that 48
such activity is in compliance with this Chapter, nor shall any such officer expend any State or 49
local resources, including the officer 's time, to provide any information or logistical support 50
related to such activity to any federal law enforcement authority or prosecuting entity. 51
General Assembly Of North Carolina Session 2025
House Bill 413-First Edition Page 11
(b) No agency or political subdivision of the State may rely on a violation of federal law 1
related to cannabis as the sole basis for taking an adverse action against a person. 2
(c) For the purposes of State law, actions related to cannabis are considered lawful as 3
long as they are in accordance with this Chapter. 4
"§ 18D-415. Rulemaking. 5
(a) Not later than 180 days after the effective date of this Chapter, the Department shall 6
adopt r ules necessary for implementation of this Chapter. Such r ules shall not prohibit the 7
operation of cannabis establishments, either expressly or through application, nor require such a 8
high investment of risk, money, time, or any othe r resource or asset that the operation of a 9
cannabis establishment is not worthy of being carried out in practice by a reasonably prudent 10
businessperson. Such regulations shall include all of the following: 11
(1) Procedures for the issuance, renewal, suspens ion, and revocation of a 12
registration to operate a cannabis establishment, with such procedures subject 13
to all requirements of Chapter 150B of the General Statutes. 14
(2) Rules, procedures, and policies to promote and encourage full participation in 15
the regu lated cannabis industry by people from communities that have 16
previously been disproportionately harmed by cannabis prohibition and 17
enforcement and to positively impact those communities, which shall reflect 18
input from the Office of Community Reinvestment , including all of the 19
following: 20
a. Conducting necessary and appropriate outreach to diverse groups that 21
may qualify for participation in activities under this Chapter. 22
b. Requiring each cannabis establishment to establish and adhere to 23
policies that encour age diversity in employment, contracting, and 24
other professional opportunities. 25
c. Requiring any cannabis establishment with 25 or more employees to 26
retain a diversity officer. 27
d. Requiring each cannabis establishment to report on the diversity of its 28
workforce, management, contracts, and ownership by January 1 of 29
each year. 30
e. Issuing rules allowing historically impacted applicants to apply for, 31
and be licensed for, cannabis establishment registrations no less than 32
180 days prior to applicants that are not historically impacted 33
applicants. 34
(3) A Race to the Top scor ing system to make the expansion of a cannabis 35
establishment to more than two locations contingent on the cannabis 36
establishment's contributions to equity and to benefiting the community. The 37
system must reflect input from the Office of Community Reinvestment and 38
shall include, but need not be limited to , considerations of diversity in the 39
cannabis establishment's ownership and workforce, including in management; 40
employment of reentering citiz ens with prior convictions; minority 41
ownership; compensation packages and benefits for workers; investing in 42
economically disadvantaged areas; whether the cannabis establishment 43
incorporates principles of environmental resiliency or sustainability, including 44
energy efficiency; or whether the principals are historically impacted 45
applicants. 46
(4) A limit on the number of cannabis establishments a major investor may invest 47
in, unless each additional establishment is owned and operated by a 48
historically impacted applicant. 49
(5) A schedule of reasonable application, registration, and renewal fees, provided 50
application fees shall not exceed five thousand dollars ($5,000), with this 51
General Assembly Of North Carolina Session 2025
Page 12 House Bill 413-First Edition
upper limit adjusted annually for inflation, unless the Department determines 1
a greater fee is necessary to carry out its responsibilities under this Chapter. 2
(6) Qualifications for registration that are directly and demonstrably related to the 3
operation of a cannabis establishment and that may not disqualify applicants 4
solely for cannabis offenses prior to the effective date of this Chapter. 5
(7) Security requirements. 6
(8) Requirements for the transportation and storage of cannabis and cannabis 7
products by cannabis establishments. 8
(9) Requirements for the delivery of cannabis and cannabis p roducts to 9
consumers, including a prohibition on business names, logos, and other 10
identifying language or images on delivery vehicles and a prohibition on 11
delivering to any address located on land owned by the federal government or 12
any address on land or in a building leased by the federal government. 13
(10) Employment and training requirements, including requiring that each 14
cannabis establishment create an identification badge for each employee or 15
agent. These requirements may not disqualify applicants solel y for cannabis 16
offenses prior to the effective date of this Chapter. 17
(11) Requirements designed to prevent the sale or diversion of cannabis and 18
cannabis products to persons under the age of 21. 19
(12) Requirements for cannabis and cannabis products sold or distributed by a 20
cannabis establishment, including prohibiting any misleading labeling and 21
requiring cannabis product labels to include all of the following: 22
a. The length of time it typically takes for the product to take effect. 23
b. A disclosure of ingredients and possible allergens. 24
c. A nutritional fact panel. 25
d. Requiring opaque, child-resistant packaging, which must be designed 26
or constructed to be significantly difficult for children under 5 years 27
of age to open and not difficult for normal adults to use properly as 28
defined by 16 C.F.R. § 1700.20. 29
e. Requiring that edible cannabis products be clearly identifiable, when 30
practicable, with a standard symbol indicating that they contain 31
cannabis. 32
(13) Health and safety regulations and standards for the manufacture of cannabis 33
products and both the indoor and outdoor cultivation of cannabis by cannabis 34
establishments. 35
(14) Restrictions on advertising, marketing, and signage, including, but not limited 36
to, a prohibition on mass -market campaigns that have a high likelihood of 37
reaching minors. 38
(15) Rules to create at least six tiers of cannabis cultivation facilities, based on the 39
size of the facility or the number of plants cultivated and whether the 40
cultivation occurs outdoors, indoors, or in a greenhouse. Security regulations 41
and licensing fees must vary based on the size of the cultivation facility. 42
(16) Restrictions or prohibitions on additives to cannabis and cannabis -infused 43
products, including, but not limited to, those that are toxic or designed to make 44
the product more addictive. 45
(17) Prohibitions on products that are designed to make the product more appealing 46
to children, including prohibiting the use of any images designed or likely to 47
appeal to minors, including cartoons, toys, animals, or children, and any other 48
likeness to images, characters, or phrases that are popularly used to advertise 49
to children. 50
(18) Restrictions on the use of pesticides that are injurious to human health. 51
General Assembly Of North Carolina Session 2025
House Bill 413-First Edition Page 13
(19) Regulations governing visits to cannabis cultivation facilities and cannabis 1
product manufacturing facilities, including requiring the cannabis 2
establishment to log visitors. 3
(20) A definition of the amount of delta -9 tetrahydrocannabinol that constitutes a 4
single serving in a cannabis product. 5
(21) Standards for the safe manufacture of cannabis extracts and concentrates. 6
(22) Requirements that educational materials be disseminated to consumers who 7
purchase cannabis-infused products. 8
(23) Requirements for random sample testing to ensure quality control, including 9
by ensuring that cannabis and cannabis -infused products are accurately 10
labeled for potency. Unless the Department determines that remediation or 11
treatment is sufficient to ensure product safety, th e testing analysis shall 12
include testing for residual solvents, poisons, or toxins; harmful chemicals; 13
dangerous molds or mildew; filth; and harmful microbials such as E. coli or 14
salmonella and pesticides. 15
(24) Standards for the operation of cannabis testi ng facilities, including 16
requirements for equipment and qualifications for personnel. 17
(25) Civil penalties for the failure to comply with rules made pursuant to this 18
Chapter. 19
(26) Procedures for collecting taxes levied on cannabis establishments. 20
(27) Requirements for on-site consumption establishments, including for security, 21
ventilation, odor control, and consumption by patrons. These rules may 22
include a prohibition on smoking indoors. 23
(b) After consulting with researchers knowledgeable about the risks and benefits of 24
cannabis and providing an opportunity for public comment, the Department shall develop a 25
scientifically accurate safety information label, handout, or both, which shall be available to each 26
adult-use cannabis consumer. The label or handout shall include both of the following: 27
(1) Advice about the potential risks of cannabis, including all of the following: 28
a. The risks of driving under the influence of cannabis and the fact that 29
doing so is illegal. 30
b. Any adverse effects unique to younger adults, including related to the 31
developing mind. 32
c. Potential adverse events and other risks. 33
d. Risks of using cannabis during pregnancy or breastfeeding. 34
(2) The need to safeguard all cannabis and cannabis products from children and 35
pets. 36
(c) The Department shall review and update the safety information materials at least once 37
every two years to ensure they remain accurate. The review period shall include soliciting input 38
from researchers knowledgeable about the risks and benefits of cannabis and an oppor tunity for 39
public comment. 40
(d) In order to ensure that individual privacy is protected, the Department shall not require 41
a consumer to provide a retail cannabis store with personal information other than 42
government-issued identification to determine the consumer's age and a retail cannabis store shall 43
not be required to acquire and record personal information about consumers. 44
"Article 5. 45
"Taxes and Use of Revenue. 46
"§ 18D-500. Cannabis Regulation Fund. 47
The Cannabis Regulation Fund is established in the Department. The Fund shall consist of 48
fees collected under this Chapter and appropriations made by the General Assembly to the Fund. 49
The Department shall administer the Fund, and funds in the Fund are hereby appropriated for the 50
purposes set forth in this Article. 51
General Assembly Of North Carolina Session 2025
Page 14 House Bill 413-First Edition
"§ 18D-501. Cannabis excise tax. 1
(a) There is imposed a cannabis excise tax equal to thirty percent (30%) of the sales price 2
of each sale of cannabis and cannabis products to a consumer. Sales to registered medical 3
cannabis patients pursuant to applicable law are exempt from the tax imposed under this section. 4
(b) The tax imposed by this section shall be paid by the consumer to the cannabis 5
establishment. Each cannabis establishment shall collect from the consumer the full amount of 6
the tax payable on each taxable sale. 7
(c) On the fifteenth day of each month, every cannabis establishment that sells cannabis 8
to consumers shall pay the excise taxes due on the cannabis that the cannabis establishment sold 9
in the prior calendar month. 10
(d) The cannabis excise tax shall be separately itemized from the cannabis excise tax on 11
the receipt provided to the purchaser. 12
"§ 18D-502. Cannabis local option tax. 13
(a) Any municipality may collect a cannabis local option tax of t wo percent (2%) of the 14
sales price on each sale of cannabis and cannabis products to a consumer in the municipality. 15
Sales to registered medical cannabis patients pursuant to applicable law are exempt from the tax 16
imposed under this section. 17
(b) The cannabis local option tax may be adopted by a municipality that has provided (i) 18
notice of the imposition and (ii) the amount to the Department of Revenue at least 90 days prior 19
to the first day of the tax quarter when the cannabis local option tax will be collected. 20
(c) The tax imposed by this sect ion shall be paid by the consumer to the cannabis 21
establishment. Each cannabis establishment shall collect from the consumer the full amount of 22
the tax payable on each taxable sale. 23
(d) On the fifteenth day of each month, every cannabis establishment that sells cannabis 24
to consumers shall pay the local option taxes due on the cannabis that the cannabis establishment 25
sold in the prior calendar month. 26
(e) The tax imposed by this section is separate from and in addition to the cannabis excise 27
tax authorized under G.S. 18D-501. The tax imposed by this section shall not be part of the sales 28
price to which the cannabis excise tax applies. The cannabis local option tax shall be separately 29
itemized from the cannabis excise tax on the receipt provided to the purchaser. 30
"§ 18D-503. Apportionment of revenue. 31
Revenues generated in excess of the amount needed to implement and enforce this Chapter 32
by the cannabis excise tax shall be distributed every three months as follows: 33
(1) Twenty-five percent (25%) shall be distributed to the Community 34
Reinvestment and Repair Fund established by this Chapter. 35
(2) Ten percent (10%) shall be distributed to the Cannabis Enterprise Opportunity 36
Fund established by this Chapter. 37
(3) Three percent (3%) shall be distributed to the Ca nnabis Education and 38
Technical Assistance Fund established by this Chapter. 39
(4) Seven percent (7%) shall be distributed to the Department of Health and 40
Human Services for use in evidence -based, voluntary programs for the 41
prevention or treatment of substance abuse. 42
(5) Two percent (2%) shall be distributed to the Department of Health and Human 43
Services for a scientifically and medically accurate public education campaign 44
educating youth and adults about the health and safety risks of alcohol, 45
tobacco, cannabis, and other substances, including the risks of driving while 46
impaired. 47
(6) Two percent (2%) shall be distributed to the Department of Health and Human 48
Services to fund diverse scientific, academic, or medical research on cannabis 49
or endocannabinoids, including research exploring the benefits of cannabis, 50
provided that all funded research data, results, and papers shall be released 51
General Assembly Of North Carolina Session 2025
House Bill 413-First Edition Page 15
into the public domain and shall be published for free and open access by the 1
public and by other researchers. 2
(7) Up to one percent (1%) shall be distributed to the Department of Public Safety 3
to fund Advanced Roadside Impaired Driving Enforcement and drug 4
recognition expert training. 5
(8) Any remaining funds shall be deposited in the General Fund." 6
SECTION 1.2. This Part becomes effective January 1, 2028, and applies to offenses 7
committed on or after that date. 8
9
PART II. AUTOMATIC EXPUNCTION OF MARIJUANA OFFENSES 10
SECTION 2.1. Article 5 of Chapter 15A of the General Statutes is amended by 11
adding a new section to read: 12
"§ 15A-145.8B. Automatic expunction of certain marijuana offenses. 13
(a) If a person was charged with a n offense involving marijuana or hashish that is legal 14
under Chapter 18D of the General Statutes, and such person was convicted, such conviction shall 15
be ordered to be automatically expunged no later than July 1, 202 8, in the manner set forth in 16
this section. 17
(b) The Administrative Office of the Courts shall determine which offenses meet the 18
criteria for expunc tion set forth in subsection (a) of this section. Upon completing the 19
determination required under this subsection, the Administrative Office of the Courts shall 20
provide an electronic list of the offenses to the clerk of each superior court. Upon receipt of the 21
electronic list required under this subsection, the clerk of each superior court shall prepare an 22
order of expungement for each case that meets the criteria set forth in subsection (a) of this section 23
and was finalized in his or her court . Upon completion of the order of expungement, the court 24
shall order the expunction. Upon order of expungement, the clerk shall forward the petition to 25
the Administrative Office of the Courts. 26
(c) No person as to whom such an order has been entered under this section shall be held 27
thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 28
giving a false statement or r esponse to any inquiry made for any purpose, by reason of the 29
person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 30
or trial. 31
(d) The court shall also order that the conviction ordered expunged under this section be 32
expunged from the records of the court and direct all law enforcement agencies bearing record 33
of the same to expunge their records of the conviction. The clerk shall notify State and local 34
agencies of the court's order as provided in G.S. 15A-150. 35
(e) Any other applicable State or local government agency shall expunge from its records 36
entries made as a result of the conviction ordered expunged under this section. The agency shall 37
also reverse any administrative actions taken against a person whose record is expunged under 38
this section as a result of the charges or convictions expunged. This subsection shall not apply to 39
the Department of Justice for DNA records and samples stored in the State DNA Database and 40
the State DNA Databank." 41
SECTION 2.2. The Adm inistrative Office of the Courts shall provide the list 42
required under G.S. 15A-145.8B(b), as enacted by this Part, by October 1, 2027. 43
SECTION 2.3. This Part becomes effective January 1, 2026. 44
45
PART III. CONFORMING CHANGES 46
SECTION 3.1. G.S. 90-87(16) is repealed. 47
SECTION 3.2. G.S. 90-94 is repealed. 48
SECTION 3.3. G.S. 90-95 reads as rewritten: 49
"§ 90-95. Violations; penalties. 50
… 51
General Assembly Of North Carolina Session 2025
Page 16 House Bill 413-First Edition
(b) Except as provided in subsections (h) and (i) of this section, any person who violates 1
G.S. 90-95(a)(1) with respect to: 2
… 3
(2) A controlled substance classified in Schedule III, IV, V, or VI or V shall be 4
punished as a Class I felon, except that the sale of a controlled substance 5
classified in Schedule III, IV, V, or VI or V shall be punished as a Class H 6
felon. The transfer of less than 5 grams of marijuana for no remuneration shall 7
not constitute a delivery in violation of G.S. 90-95(a)(1). 8
… 9
(d) Except as provided in subsections (h) and (i) of this section, any person who violates 10
G.S. 90-95(a)(3) with respect to: 11
… 12
(4) A controlled substance classified in Schedule VI shall be guilty of a Class 3 13
misdemeanor, but any sentence of imprisonment imposed must be suspended 14
and the judge may not require at the time of sentencing that the defendant 15
serve a period of imprisonment as a special condition of probation. If the 16
quantity of the controlled substance exceeds one -half of an ounce 17
(avoirdupois) of marijuana or one-twentieth of an ounce (avoirdupois) of the 18
extracted resin of marijuana, commonly known as hashish, the violation shall 19
be punishable as a Class 1 misdemeanor. If the quantity of the controlled 20
substance exceeds one and one -half ounces (avoirdupois) of marijuana, or 21
three-twentieths of an ounce (avoirdupois) of the extracted resin of marijuana, 22
commonly known as hashis h, or if the controlled substance consists of any 23
quantity of synthetic tetrahydrocannabinols or tetrahydrocannabinols isolated 24
from the resin of marijuana, the violation shall be punishable as a Class I 25
felony. 26
… 27
(e) The prescribed punishment and degree of any offense under this Article shall be 28
subject to the following conditions, but the punishment for an offense may be increased only by 29
the maximum authorized under any one of the applicable conditions: 30
… 31
(8) Any person 21 years of age or older who comm its an offense under 32
G.S. 90-95(a)(1) on property used for a child care center, or for an elementary 33
or secondary school or within 1,000 feet of the boundary of real property used 34
for a child care center, or for an elementary or secondary school shall be 35
punished as a Class E felon. For purposes of this subdivision, the transfer of 36
less than five grams of marijuana for no remuneration shall not constitute a 37
delivery in violation of G.S. 90-95(a)(1). For purposes of this subdivision, a 38
child care center is as defined in G.S. 110-86(3)a., and that is licensed by the 39
Secretary of the Department of Health and Human Services. 40
… 41
(10) Any person 21 years of age or older who commits an offense under 42
G.S. 90-95(a)(1) on property that is a public park or within 1,000 feet of the 43
boundary of real property that is a public park shall be punished as a Class E 44
felon. For purposes of this subdivision, the transfer of less than five grams of 45
marijuana for no remuneration shall not constitute a delivery in violation of 46
G.S. 90-95(a)(1). 47
… 48
(h) Notwithstanding any other provision of law, the following provisions apply except as 49
otherwise provided in this Article: 50
General Assembly Of North Carolina Session 2025
House Bill 413-First Edition Page 17
(1) Any person who sells, manufactures, delivers, transports, or possesses in 1
excess of 10 pounds (avoirdupois) of marijuana shall be guilty of a felony 2
which felony shall be known as "trafficking in marijuana" and if the quantity 3
of such substance involved: 4
a. Is in excess of 10 pounds, but less than 50 pounds, such person shall 5
be punished as a Class H felon and shall be sentenced to a minimum 6
term of 25 months and a maximum term of 39 months in the State's 7
prison and shall be fined not less than five thousand dollars ($5,000); 8
b. Is 50 pounds or more, but less than 2,000 pounds, such person shall be 9
punished as a Class G felon and shall be sentenced to a minimum term 10
of 35 months and a maximum term of 51 months in the State's prison 11
and shall be fined not less than twenty-five thousand dollars ($25,000); 12
c. Is 2,000 pounds or more, but less than 10,000 pounds, suc h person 13
shall be punished as a Class F felon and shall be sentenced to a 14
minimum term of 70 months and a maximum term of 93 months in the 15
State's prison and shall be fined not less than fifty thousand dollars 16
($50,000); 17
d. Is 10,000 pounds or more, such person shall be punished as a Class D 18
felon and shall be sentenced to a minimum term of 175 months and a 19
maximum term of 222 months in the State's prison and shall be fined 20
not less than two hundred thousand dollars ($200,000). 21
…." 22
SECTION 3.4. G.S. 90-113.22A is repealed. 23
SECTION 3.5. G.S. 90-113.21 reads as rewritten: 24
"§ 90-113.21. General provisions. 25
(a) As used in this Article, "drug paraphernalia" means all equipment, products and 26
materials of any kind that are used to facilitate, or intended or designed to facilitate, violations of 27
the Controlled Substances Act, including planting, propagating, cultivating, growing, harvesting, 28
manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, 29
packaging, repackaging, storing, containing, and concealing controlled substances and injecting, 30
ingesting, inhaling, or otherwise introducing controlled substances into the human body. "Drug 31
paraphernalia" includes, but is not limited to, the following: 32
… 33
(7) Separation gins and sifte rs for removing twigs and s eeds from, or otherwise 34
cleaning or refining, marijuana; 35
… 36
(12) Objects for ingesting, inhaling, or otherwise introducing marijuana, cocaine, 37
hashish, or hashish oil cocaine into the body, such as: 38
a. Metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or 39
without screens, permanent screens, hashish heads, or punctured metal 40
bowls; 41
b. Water pipes; 42
c. Carburetion tubes and devices; 43
d. Smoking and carburetion masks; 44
e. Objects, commonly called roach clips, for ho lding burning material, 45
such as a marijuana cigare tte, material that has become too small or 46
too short to be held in the hand; 47
…." 48
SECTION 3.6. G.S. 105-113.106 reads as rewritten: 49
"§ 105-113.106. Definitions. 50
The following definitions apply in this Article: 51
General Assembly Of North Carolina Session 2025
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… 1
(3) Dealer. – Any of the following: 2
a. A person who actually or constructively possesses more than 42.5 3
grams of marijuana, seven or more grams of any other controlled 4
substance other than marijuana that is sold by weight, or 10 or more 5
dosage u nits of any other controlled substance that is not sold by 6
weight. 7
b. A person who in violation of Chapter 18B of the General Statutes 8
possesses illicit spirituous liquor for sale. 9
c. A person who in violation of Chapter 18B of the General Statutes 10
possesses mash. 11
d. A person who in violation of Chapter 18B of the General Statutes 12
possesses an illicit mixed beverage for sale. 13
… 14
(6) Marijuana. – All parts of the plant of the genus Cannabis, whether growing or 15
not; the seeds of this plant; the resin extracted from any part of this plant; and 16
every compound, salt, derivative, mixture, or preparation of this plant, its 17
seeds, or its resin. 18
…." 19
SECTION 3.7. G.S. 105-113.107 reads as rewritten: 20
"§ 105-113.107. Excise tax on unauthorized substances. 21
(a) Controlled Substances. – An excise tax is levied on controlled substances possessed, 22
either actually or constructively, by dealers at the following rates: 23
(1) At the rate of forty cents (40¢) for each gram, or fraction thereof, of harvested 24
marijuana stems and stalks that have been separated from and are not mixed 25
with any other parts of the marijuana plant. 26
(1a) At the rate of three dollars and fifty cents ($3.50) for each gram, or fraction 27
thereof, of marijuana, other than separated stems and stalks taxed under 28
subdivision (1) of this [sub]section, or synthetic cannabinoids. 29
(1b) At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of 30
cocaine. 31
(1c) At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of any 32
low-street-value drug that is sold by weight. 33
(2) At the rate of two hundred dollars ($200.00) for each gram, or fraction thereof, 34
of any other controlled substance that is sold by weight. 35
(2a) At the rate of fifty dollars ($50.00) for each 10 dosage units, or fraction 36
thereof, of any low-street-value drug that is not sold by weight. 37
(3) At the rate of two hundred dollars ($200.00) for each 10 dosage units, or 38
fraction thereof, of any other controlled substance that is not sold by weight. 39
(a1) Weight. – A quantity of marijuana or other controlled substance is measured by the 40
weight of the substance whether pure or impure or dilute, or by dosage units when the substance 41
is not sold by weight, in the dealer's possession. A quantity of a controlled substance is dilute if 42
it consists of a detectable quantity of pure controlled substance and any excipients or fillers. 43
…." 44
SECTION 3.8. G.S. 105-113.107A reads as rewritten: 45
"§ 105-113.107A. Exemptions. 46
(a) Authorized Possession. – The tax levied in this Article does not apply to a substance 47
in the possession of a dealer who is authorized by law to possess the substance. This exemption 48
applies only during the time the dealer's possession of the substance is authorized by law. 49
(b) Certain Marijuana Parts. – The tax levied in this Ar ticle does not apply to the 50
following marijuana: 51
General Assembly Of North Carolina Session 2025
House Bill 413-First Edition Page 19
(1) Harvested mature marijuana stalks when separated from and not mixed with 1
any other parts of the marijuana plant. 2
(2) Fiber or any other product of marijuana stalks described in subdivision (1) of 3
this subsection, except resin extracted from the stalks. 4
(3) Marijuana seeds that have been sterilized and are incapable of germination. 5
(4) Roots of the marijuana plant." 6
SECTION 3.9. G.S. 105-113.108(b)(1) is repealed. 7
SECTION 3.10. G.S. 106-134(4) reads as rewritten: 8
"(4) If it is for use by man and contains any quantity of the narcotic or hypnotic 9
substance alphaeucaine, barbituric acid, betaeucaine, bromal, cannabis, 10
carbromal, chloral, coca, cocaine, codeine, heroin, marijuana, morphine, 11
opium, paraldehyde, peyote, or sulphonmethane; or any chemical derivative 12
of such substances, which derivative has been by the Board after investigation, 13
found to be, and by regulations under this Article, designated as, habit 14
forming; unless its label bears the name and quantity or proportion of such 15
substance or derivative and in juxtaposition therewith the statement "Warning 16
– May be habit forming."" 17
SECTION 3.11. G.S. 148-64.1(a)(2)e. is repealed. 18
SECTION 3.12. G.S. 90-94.1 is repealed. 19
SECTION 3.13. This Part becomes effective January 1, 2028, and applies to offenses 20
committed on or after that date. 21
22
PART IV. SAVINGS CLAUSE, SEVERABILITY CLAUSE, AND EFFECTIVE DATE 23
SECTION 4.1. Prosecutions for offenses committed before the effective date of this 24
act are not abated or affected by this act, and the statutes that would be applicable but for this act 25
remain applicable to those prosecutions. 26
SECTION 4.2. If any provision of this act or its application is held invalid, the 27
invalidity does not affect other provis ions or applications of this act that can be given effect 28
without the invalid provisions or application and, to this end, the provisions of this act are 29
severable. 30
SECTION 4.3. Except as otherwise provided in this act, this act is effective when it 31
becomes law. 32