Marijuana Justice and Reinvestment Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 350

Short Title: Marijuana Justice and Reinvestment Act. (Public)
Sponsors: Senators Meyer, Chaudhuri, and Murdock (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 20, 2025
*S350-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.(a) The General Statutes are amended by adding a new Chapter to 7
read: 8
"Chapter 18D. 9
"Regulation of Cannabis. 10
"Article 1. 11
"General Provisions. 12
"§ 18D-100. Findings. 13
The General Assembly finds all of the following: 14
(1) Cannabis prohibition, like alcohol prohi bition before it, has been a wasteful 15
and destructive failure. About half of Americans admit to having used 16
cannabis despite more than eight decades of prohibition. 17
(2) Regulating cannabis similarly to alcohol will replace the uncontrolled illicit 18
market w ith a well -regulated system. Legalization allows regulation and 19
control to protect consumers, workers, communities, and the environment. 20
(3) The prohibition of cannabis has had an unfair, disparate impact on persons 21
and communities of color. A 2020 report by the American Civil Liberties 22
Union found black individuals are three and six-tenths times as likely as white 23
individuals to be arrested for cannabis possession, despite nearly identical use 24
rates. 25
(4) The prohibition of cannabis diverts law enforcement resources from violent 26
and property crimes and subjects civilians to unnecessary police interactions. 27
(5) Keeping cannabis illegal deprives the State of thousands of legal jobs and 28
hundreds of millions of dollars in tax revenue. 29
(6) The use of cannabis should be legal for persons 21 years of age or older and 30
subject to taxation and regulation in a manner that does all of the following: 31
a. Controls the production and distribution of cannabis under a system of 32
licensing, regulation, and taxation. 33
b. Includes lab testing, potency labeling, secure packaging, restrictions 34
on advertising, and education about responsible use and risks. 35
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 350-First Edition
c. Fosters a responsible industry, whereby businesses will only be 1
allowed to expand if they prioritize diversity, goo d 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 see ds 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, prop agating, 22
cultivating, growing, harvesting, composting, manufacturing, compounding, 23
converting, producing, processing, preparing, testing, analyzing, packaging, 24
repackaging, storing, vaporizing, or containing cannabis, or for ingesting, 25
inhaling, or otherwise introducing cannabis into the human body. 26
(3) Cannabis cultivation facility. – An entity registered to cultivate, prepare, and 27
package cannabis, and sell cannabis to other cannabis establishments . A 28
cannabis cultivation facility may not produce cannabis concentrates, tinctures, 29
extracts, or other cannabis products unless it is also licensed as a cannabis 30
product manufacturing facility. 31
(4) Cannabis establishment. – A cannabis cultivation facility, an on -site 32
consumption establishment, a cannabis testing facility, a cannabis product 33
manufacturing facility, a cannabis transporter, or any other type of cannabis 34
business authorized and registered by the Commission. 35
(5) Cannabis product manufacturing facility. – An entity registered to purchase 36
cannabis, manuf acture, prepare, and package cannabis products , and sell 37
cannabis and cannabis products to other cannabis establishments but not to 38
consumers. 39
(6) Cannabis products. – Products that are comprised of cannabis, cannabis 40
concentrate, or cannabis extract and other ingredients and are intended for use 41
or consumption, such as, but not limited to, edible products, ointments, and 42
tinctures. 43
(7) Cannabis testing facility. – An entity registered to test cannabis for potency 44
and contaminants. 45
(8) Cannabis transporter. – An entity registered to transport cannabis between 46
cannabis establishments. 47
(9) Commission. – The North Carolina Alcoholic Beverage Control Commission 48
established under G.S. 18B-200. 49
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 3
(10) Consumer. – A person 21 years of age or old er who purchases cannabis or 1
cannabis products for personal use by persons 21 years of age or older, but not 2
for resale. 3
(11) Hemp. – The plant of the genus cannabis and any part of such plant, whether 4
growing or not, with a delta -9 tetrahydrocannabinol con centration that does 5
not exceed three-tenths percent (0.3%) on a dry weight basis of any part of the 6
plant cannabis, or per volume of weight of cannabis product, or the combined 7
percent of delta -9 tetrahydrocannabinol and tetrahydrocannabinolic acid in 8
any part of the cannabis plant regardless of moisture content. 9
(12) Locality. – A city or county. 10
(13) Office. – The Office of Community Reinvestment. 11
(14) On-site consumption establishment. – An entity registered to sell cannabis or 12
cannabis products for on-site consumption. 13
(15) Possession limit. – Any of the following amounts: 14
a. Two ounces of cannabis in a form other than concentrated cannabis or 15
cannabis products. 16
b. Fifteen grams of concentrated cannabis. 17
c. Cannabis products containing no more than 2,000 milligrams of 18
tetrahydrocannabinol. 19
d. Six cannabis plants. 20
e. Any additional cannabis produced by the person 's cannabis plants 21
provided that the possession of any amount of cannabis in excess of 2 22
ounces of cannabis, 15 grams of concentrated cannabi s, and cannabis 23
products containing no more than 2,000 milligrams of 24
tetrahydrocannabinol must be limited to the same property where the 25
plants were cultivated. 26
(16) Public place. – Any place to which the general public has access. It does not 27
include an on-site consumption establishment. 28
"§ 18D-102. Applicability. 29
This Chapter does not apply to medical cannabis regulated under Article 44 of Chapter 90 of 30
the General Statutes. 31
"Article 2. 32
"Office of Community Reinvestment. 33
"§ 18D-200. Creation of the Office of Community Reinvestment. 34
There is established in the Commission the Office of Community Reinvestment . The 35
Governor shall appoint an Executive Director of the Office, who shall have at least five years of 36
experience in civil rights advocacy, civil rights litigation, or social justice. 37
"§ 18D-201. Establishment of funds. 38
(a) The following funds are established in the Commission: 39
(1) The Community Reinvestment and Repair Fund. 40
(2) The Social Opportunity Fund. 41
(3) The Cannabis Education and Technical Assistance Fund. 42
(b) No later than July 1 of each year, the Office shall produce and make publicly available 43
a report on how the Community Reinvestment and Repair Fund, Social Opportunity Fund, and 44
Cannabis Education and Technical Assistance Fund were allocated during the prior fiscal year. 45
(c) No later than November 1 of each year, the Office shall solicit public input on the 46
uses of the Community Reinvestment and Repair Fund, Social Opportunity Fund, and Cannabis 47
Education and Technical Assistance Fund. The Office of Community Reinvestment shall publish 48
a review of feedback received no later than December 15 of each year. 49
"§ 18D-202. Powers and duties of the Office. 50
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The Office shall promote and encourage full participation in the regulated cannabis industry 1
by people from communities that have previously been disproportionately harmed by cannabis 2
prohibition and enforcement in order to positively impact those communities. The Office shall 3
have all of the following powers and duties: 4
(1) Defining, by rule, the term "community reinvestment applicant" and 5
considering whether the definition should include any or all of the following: 6
a. Individuals with past convictions for a cannabis offense. 7
b. Individuals whose parent had a prior conviction for a cannabis offense. 8
c. Individuals who have had a less than honorable discharge from the 9
military due to cannabis. 10
d. Individuals from census tracts or other geographic areas 11
disproportionately impacted by cannabis enforcement, poverty, 12
unemployment, cannabis prohibition, mass incarceration, or systemic 13
racism. 14
e. Racial and ethnic minorities that have been disproportionately 15
impacted by cannabis enforcement. 16
f. Racial and ethnic minorities that have been disproportionately 17
excluded from the legal cannabis industry. 18
(2) Administering the Community Reinvestment and Repair Fund to improve the 19
well-being of individuals and communities that have experienced a 20
disproportionate negative impact from poverty, unemployment, cannabis 21
prohibition and enforcement, mass incarceration, or systemic racism. Before 22
determining how funds from the Community Reinvestment and Repair Fund 23
will be allocated, the Office shall promote and hold public meetings in at least 24
10 of the census tract areas that have been significantly impacted by poverty, 25
unemployment, cannabis prohibition, mass incarceration, or systemic racism 26
to seek input on the communities ' needs and priorities for the Community 27
Reinvestment and Repair Fund. The Office of Community Reinvestment shall 28
distribute funds from the Community Reinvestment and Repair Fund in a 29
manner that improves the well-being of communities and individuals that have 30
been significantly impacted by poverty, unemployment, cannabis prohibition, 31
mass incarceration, or systemic racism. Permissible uses of the fund include, 32
but are not limited to, grants to nonprofit organizatio ns or allocations to 33
government agencies for any of the following: 34
a. Housing assistance, including to promote home ownership among 35
members of minority groups that are underrepresented in home 36
ownership due to redlining or discrimination. 37
b. Reentry services, including job training and placement. 38
c. Scholarship assistance for low-income students. 39
d. Grants to community -based orga nizations to provide services to 40
prevent violence, support youth development, provide early 41
intervention for youth and families, and promote community stability 42
and safety. 43
e. Legal or civic aid. 44
(3) Administering the Social Opportunity Fund to issue zero -interest loans and 45
grants to community reinvestment applicants and cannabis establi shments 46
owned and operated by community reinvestment applicants. 47
(4) Administering the Cannabis Education and Technical Assistance Fund to 48
provide free or low -cost training, education, and technical assistance for 49
individuals working in the cannabis industry or owning a cannabis 50
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 5
establishment, with a focus on individuals who would qualify as community 1
reinvestment applicants. 2
(5) Advising the Commission regarding regulations, including advising against 3
implementing regulations and financial requirements that unnecessarily 4
impose financial burdens that undermine the purposes of this Chapter and 5
providing recommendations on regulations related to diversity, community 6
reinvestment applications, and the Race to the Top scoring system. 7
(6) Producing reports and recommendations on community reinvestment from the 8
legal cannabis economy, including in ownership, management, and 9
employment. 10
(7) Investigating whether businesses are adhering to their obligations, including 11
those undertaken as part of the Race to the Top scoring system, and 12
recommending corrective action or discipline if they fail to do so, which may 13
include a suspension or revocation of licenses. 14
"Article 3. 15
"Registration and Licensure. 16
"§ 18D-300. Registration with the Commission. 17
(a) Each application or renewal application for an annual registration to operate a 18
cannabis establishment shall be submitted to the Commission. A renewal application may be 19
submitted up to 90 days prior to the expiration of the cannabis establishment's registration. 20
(b) The Commission shall begin accepting an d processing applications to operate 21
cannabis establishments from community reinvestment applicants one year after the effective 22
date of this Chapter. 23
(c) The Commission may begin accepting and processing applications to operate 24
cannabis establishments from applicants other than community reinvestment applicants no earlier 25
than one year and 180 days after the effective date of this Chapter. 26
(d) Upon receiving an application or renewal application for a cannabis establishment, 27
the Commission shall immediately forward a copy of each application and half of the registration 28
application fee to the local regulatory authority for the locality in which the applicant desires to 29
operate the cannabis establishment, unless the locality has not designat ed a local regulatory 30
authority. 31
(e) Within 120 days after receiving an application or renewal application, the 32
Commission shall issue an annual registration or a conditional registration to the applicant, unless 33
the Commission finds the applicant is not in compliance with rules enacted by the Commission 34
or the Commission is notified by the relevant locality that the applicant is not in compliance with 35
ordinances and regulations in effect at the time of application. 36
(f) Applicants may apply for conditional approval if they have not purchased or leased 37
the property where their cannabis establishment would be located. If the applicant is otherwise 38
qualified, the Commission shall provide conditional approval. Once the applicant provides the 39
Commission with a completed, supplemental application that includes the premises, the 40
Commission shall forward the information to the local regulatory authority and approve or reject 41
the final application within 45 days from the date of submission. 42
(g) Upon denial of an application, the Commission shall notify the applicant in writing 43
of the specific reason for its denial. 44
(h) Cannabis establishments, and the books and records maintained and created by 45
cannabis establishments, are subject to inspection by the Commission. 46
"§ 18D-301. Licensure and local control. 47
(a) An on -site consumption establishment shall only operate if the lo cal regulatory 48
authority in the locality where it is located issued a permit, license, or registration that expressly 49
allows the operation of the on-site consumption establishment. 50
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(b) Except as provided in this subsection, a locality may prohibit the operation of any or 1
all types of cannabis establishments within its jurisdiction through the enactment of an ordinance. 2
A locality's prohibition on cannabis establishments shall not prohibit transportation through the 3
locality by cannabis establishments located in other jurisdictions. 4
(c) A locality may enact ordinances or regulations not in conflict with this Chapter, or 5
with rules enacted pursuant to this Chapter, governing the time, place, manner, and number of 6
cannabis establishment operations. A locality may establish civil penalties for violation of an 7
ordinance or regulations governing the time, place, and manner of a cannabis establishment that 8
may operate in such locality. 9
(d) No locality may negotiate or enter into a host community agreement with a cannabis 10
establishment or a cannabis establishment applicant. As used in this subsection, a "host 11
community agreement" means an agreement that the cannabis establishment or applicant provide 12
monies, donations, in-kind contributions, services, or anything of value to the locality. 13
"Article 4. 14
"Operation of Cannabis Stores. 15
"§ 18D-400. Definitions. 16
For purposes of this Article, unless the context requires otherwise, the term "local board" is 17
as defined in G.S. 18B-101. 18
"§ 18D-401. Sale of cannabis in ABC stores and cannabis stores. 19
(a) Except as provided in Articles 1 and 3 of this Chapter, cannabis and cannabis products 20
may only be sold in ABC stores or cannabis stores operated by local boards. For purposes of this 21
subsection, the term "sold only in ABC stores or cannabis stores operated by local boards " 22
includes online orders placed in accordance with subsection (b) of this section. 23
(b) An ABC store or cannabis store may accept an online order, including payment, for 24
cannabis sold in its store. An order for cannabis placed online pursuant to this subsection shall 25
be picked up in person at the store by the individual who placed the order. An order placed online 26
pursuant to this subsection shall include the name and unique identifier number of the individual 27
placing the order, who shall be at l east 21 years of age as shown on the form of identification 28
authorized pursuant to G.S. 18B-302(d)(1) and otherwise legally authorized to purchase 29
cannabis. An employee of the ABC store or cannabis store shall confirm that an online order for 30
cannabis is picked up in person at the store by the individual who placed the order by verifying 31
the individual's identification that conforms to the identifying information contained in the online 32
order. 33
"§ 18D-402. Location, opening, and closing of stores. 34
The provisions of G.S. 18B-801 shall apply to cannabis stores. 35
"§ 18D-403. When stores operate. 36
(a) No cannabis store shall be open, and no ABC store or cannabis store employee shall 37
sell cannabis , between 9:00 P.M. and 9:00 A.M. The local board shall otherwise determine 38
opening and closing hours of its stores. 39
(b) No cannabis store shall be open, and no ABC store or cannabis store employee shall 40
sell cannabis, on any Sunday, Thanksgiving Day, or Christmas Day. A local board may otherwise 41
determine the days on which its stores shall be closed. 42
"§ 18D-404. Rules. 43
The Commission may adopt rules concerning the organization and operation of self -service 44
cannabis stores, the size of cannabis store signs, the display of cannabis, solicitation in and around 45
ABC stores, and any other subject relating to the efficient operation of cannabis stores. 46
"Article 5. 47
"Possession and Use of Cannabis. 48
"§ 18D-500. Personal use of cannabis. 49
Notwithstanding any other provision of law, except as otherwise provided in this Chapter, 50
the following acts are not unlawful and shall not be a criminal or civil offense under State law or 51
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an ordinance of any locality, or be a basis for seizure or forfeiture of assets under State law, for 1
persons 21 years of age or older: 2
(1) Possessing, consuming, ingesting, smoking, growing, using, processing, 3
purchasing, or transporting an amount of cannabis that does not exceed the 4
possession limit. 5
(2) Transferring an amount of cannabis that does not exceed the possession limit 6
to a person who is 21 years of age or older without remuneration. 7
(3) Controlling property where actions described by this section occur. 8
(4) Assisting another person who is 21 years of age or older in any of the acts 9
described in this section. 10
"§ 18D-501. Restrictions on personal cultivation; penalty. 11
(a) It is unlawful to cultivate cannabis plants in any of the following ways: 12
(1) Cannabis plants may not be cultivated in a location where plants are subject 13
to public view, including view from another private property, without the use 14
of binoculars, aircraft, or other optical aids. 15
(2) A person who cultivates cannabis must take reasonable precautions to ensure 16
the plants are secure from unauthorized access and access by persons under 17
21 years of age. For purposes of illustration and not limitation, cultivating 18
cannabis in an enclosed , locked space that persons under 21 years of age do 19
not possess a key to constitutes reasonable precautions. 20
(3) Cannabis cultivation may only occur on property lawfully in possession of the 21
cultivator or with the consent of the person in lawful possession of the 22
property. 23
(b) A person who violates subsection (a) of this section is guilty of an infraction, 24
punishable by a fine of up to seven hundred fifty dollars ($750.00) or up to 75 hours of 25
community service. 26
"§ 18D-502. Public smoking prohibited; penalty. 27
(a) It is unlawful to smoke cannabis in a public place. 28
(b) It is unlawful to smoke cannabis in an area of an on -site consumption establishment 29
where cannabis smoking is prohibited. 30
(c) A person who violates this section is guilty of an infraction, punishable by a fine of 31
up to fifty dollars ($50.00) or up to five hours of community service. 32
"§ 18D-503. Consuming cannabis while operating a moving vehicle prohibited; penalty. 33
(a) No person shall consume cannabis while operating or driving a motor veh icle, boat, 34
vessel, aircraft, or other motorized device used for transportation. 35
(b) Unless the conduct is covered under some other provision of law providing greater 36
punishment, a person who violates subsection (a) of this section, and only consumed canna bis, 37
is guilty of an infraction, punishable as follows: 38
(1) For a first offense, any or all of the following: 39
a. A fine not more than two hundred fifty dollars ($250.00). 40
b. Not more than 25 hours of community service. 41
c. Suspension of the person's drivers license for up to six months. 42
(2) For a second or subsequent offense, any or all of the following: 43
a. A fine not more than five hundred dollars ($500.00). 44
b. Not more than 50 hours of community service. 45
c. Suspension of the person's drivers license for up to one year. 46
"§ 18D-504. False identification; penalty. 47
(a) A person who is under 21 years of age may not present or offer to a cannabis 48
establishment or the cannabis establishment's agent or employee any written or oral evidence of 49
age that is false, fraudulent, or not actually the minor's own for either of the following purposes: 50
General Assembly Of North Carolina Session 2025
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(1) Purchasing, attempting to purchase, or otherwise procuring or attempting to 1
procure cannabis. 2
(2) Gaining access to a cannabis establishment. 3
(b) A person who violates th is section is guilty of an infraction, punishable by a fine of 4
not more than one hundred fifty dollars ($150.00) or up to 15 hours of community service. 5
"§ 18D-505. Unlawful cannabis extraction; penalty. 6
(a) No person, other than a cannabis product manufacturing facility complying with this 7
Chapter and Commission rules, may perform solvent -based extractions on cannabis using 8
solvents other than water, glycerin, propylene glycol, vegetable oil, or food-grade ethanol. 9
(b) No person may extract compounds from cannabis using ethanol in the presence or 10
vicinity of open flame. 11
(c) A person who violates this section is guilty of a Class E felony, which shall include a 12
fine of not more than five thousand dollars ($5,000). 13
"§ 18D-506. Cannabis accessories authorized. 14
(a) Except as provided in this section, notwithstanding any other provision of law, it is 15
not unlawful and shall not be an offense under State law for persons 21 years of age or older to 16
manufacture, possess, possess with intent to distribute, or purcha se cannabis accessories or to 17
distribute or sell cannabis accessories to a person who is 21 years of age or older. 18
(b) Except as provided in this section, a person who is 21 years of age or older is 19
authorized to manufacture, possess , and purchase cannabis accessories and to distribute or sell 20
cannabis accessories to a person who is 21 years of age or older. This section is intended to meet 21
the requirements of section 863 of Title 21 of the United States Code by authorizing, under State 22
law, any person in compliance with this Chapter to manufacture, possess, or distribute cannabis 23
accessories. 24
(c) No person may manufacture, distribute, or sell cannabis accessories that violate rules 25
adopted by the Commission. A first offense under this section is an infraction , punishable by a 26
fine of up to one thousand dollars ($1,000) and forfeiture of the cannabis accessories. A second 27
or subsequent offense of this section is a Class A1 misdemeanor punishable by a fine of up to 28
five thousand dollars ($5,000), up to 180 days in jail, or both , and forfeiture of the cannabis 29
accessories. 30
"§ 18D -507. Purchasing o f cannabis or cannabis accessories unlawful in certain cases; 31
penalties; treatment and education programs and services. 32
(a) No person to whom cannabis or cannabis accessories may not lawfully be sold under 33
this Chapter shall consume, purchase, or possess, or attempt to consume, purchase, or possess, 34
any cannabis or cannabis accessories. 35
(b) Any person 18 years of age or older who violates subsection (a) of this section is 36
guilty of an infraction , punishable by a fine of up to twenty -five dollars ($25.00) or up to five 37
hours of community service. Additionally, the person shall be ordered to enter a substance abuse 38
treatment or education program, or both, if available, that in t he opinion of the court best suits 39
the needs of the person. 40
(c) Any juvenile who violates subsection (a) of this section is guilty of an infraction, 41
punishable by a fine of up to twenty -five dollars ( $25.00) or up to five hours of community 42
service. Additionally, the juvenile shall be ordered to enter a substance abuse treatment or 43
education program, or both, if available, that in the opinion of the court best suits the needs of 44
the juvenile. 45
"§ 18D-508. Nondiscrimination for personal use of cannabis. 46
(a) A person shall not be subject to arrest, prosec ution, or penalty in any manner, or be 47
denied any right or privilege, including, but not limited to, disciplinary action by a business, 48
occupational, or professional licensing board or bureau, solely for co nduct permitted under this 49
Chapter. 50
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(b) Except as provided in this section, neither the State nor any of its political 1
subdivisions may impose any penalty or deny any benefit or entitlement for conduct permitted 2
under this Chapter or for the presence of cannabinoids or cannabinoid metabolites in the urine, 3
blood, saliva, breath, hair, or other tissue or fluid of a person who is 21 years of age or older. 4
(c) Except as provided in this section, neither the State nor any of its political 5
subdivisions may deny a drivers license, a professional license, housing assistance, social 6
services, or other benefits based on cannabis use or for the presence of cannabinoids or 7
cannabinoid metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of a person 8
who is 21 years of age or older. 9
(d) Notwithstanding any provision of law to the contrary, a person shall not be denied 10
custody of or visitation with a minor for acting in accordance with this Ch apter, unless the 11
person's behavior is such that i t creates an unreasonable danger to the minor that can be clearly 12
articulated and substantiated. 13
(e) Except as provided in this section, neither the State nor any of its political 14
subdivisions may deny employment or a contract to a person for engaging in conduct permitte d 15
under this Chapter for a prior conviction for a nonviolent cannabis offense that does not involve 16
distribution to minors or for testing positive for the presence of cannabinoids or cannabinoid 17
metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of the individual's 18
body. 19
(f) For the purpose of medical care, including organ and tissue transplants, the use of 20
cannabis does not constitute the use of an illicit substance or otherwise disqualify a person from 21
needed medical care and may only be considered with respect to evidence-based clinical criteria. 22
(g) Notwithstanding any provision of law to the contrary, unless there is a specific finding 23
that the individual 's use, cultivation, or possession of cannabis could create a danger to the 24
individual or another person, it shall not be a violation of conditions of parole, probation, or 25
pretrial release to do either of the following: 26
(1) Engage in conduct allowed by this Chapter. 27
(2) Test positive for cannabis, delta -9 tetrahydrocannabinol, or any other 28
cannabinoid or metabolite of cannabis. 29
(h) This section does not do any of the following: 30
(1) Prevent a government employer from disciplining an employee or contractor 31
for ingesting cannabis in the workplace or for working while impaired by 32
cannabis. 33
(2) Apply to the extent that they conflict with a governmental employer 's 34
obligations under federal law or regulations or to the extent that they would 35
disqualify the entity from a monetary or licensing-related benefit under federal 36
law or regulations. 37
(3) Authorize any person to engage in, and does not prevent the imposition of any 38
civil, criminal, discipline, o r other penalties, including discipline or 39
termination by a governmental employer, any task while under the influence 40
of ca nnabis, when doing so would constitute negligence or professional 41
malpractice. 42
"§ 18D-509. Lawful operation of cannabis-related facilities. 43
(a) Notwithstanding any other provision of law , engaging in any activities involving 44
cannabis, cannabis accessories, or cannabis products, if the person co nducting the activities has 45
obtained a current, valid registration to operate a cannabis establishment or is acting in his or her 46
capacity as an owner, employee, or agent of a registered cannabis establishment and the activities 47
are within the scope of activities allowed by the Commission for that type of cannabis 48
establishment, is not unlawful and shall not be an offense under State law or be a basis for seizure 49
or forfeiture of assets under State law. 50
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(b) Nothing in this section prevents the imposition of penalties for violating this Chapter 1
or rules adopted by the Commission or localities pursuant to this Chapter. 2
"§ 18D-510. Verifying the age of cannabis consumers. 3
(a) A cannabis establishment or an agent or staffer of a cannabis establishment may not 4
sell, deliver, distribute, give, transfer, or otherwise furnish cannabis to a person under the age of 5
21. 6
(b) Except as otherwise provided in this section, in a prosecution for selling, transferring, 7
delivering, distributing, giving, or otherwise furnishing cannabis, cannabis products, or cannabis 8
accessories to any person who is under 21 years of age, it is a complete defense if both of the 9
following requirements are met: 10
(1) The person who sold, gave, or otherwise furnished cannabis, cannabis 11
products, or cannabis accessories was a retail cannabis store or on -site 12
consumption establishment or was acting in his or her capacity as an owner, 13
employee, or agent of a retail c annabis store or on -site consumption 14
establishment at the time the cannabis, cannabis products, or cannabis 15
accessories were sold, given, or otherwise furnished to the person. 16
(2) Before selling, giving, or otherwise furnishing cannabis, cannabis products, 17
or cannabis accessories to a person who is under 21 years of age, the person 18
who sold, gave, or otherwise furnished the cannabis or cannabis accessories 19
or a s taffer or agent of the retail cannabis store was shown a document that 20
appeared to be issued by an agency of a federal, state, tri bal, or foreign 21
sovereign government and that indicated that the person to whom the cannabis 22
or cannabis accessories were sold, given, or otherwise furnished was 21 years 23
of age or older at the time the cannabis or cannabis accessories were sold, 24
given, or otherwise furnished to the person. 25
(c) Subsection (b) of this section does not apply if both of the following requirements are 26
met: 27
(1) The document that was shown to the person who sold, gave, or otherwise 28
furnished the cannabis, cannabis products, or cannabis accessories was 29
counterfeit, forged, altered, or issued to a person other than the person to 30
whom the cannabis, cannabi s products, or cannabis accessories were sold, 31
given, or otherwise furnished. 32
(2) Under the circumstances, a reasonable person would have known or suspected 33
that the document was counterfeit, forged, altered, or issued to a person other 34
than the person to whom the cannabis, cannabis products, or cannabis 35
accessories were sold, given, or otherwise furnished. 36
"§ 18D-511. Occupational licensing. 37
(a) A holder of a professional or occupational license may not be subject to professional 38
discipline for providing advice or services related to cannabis establishments or applications to 39
operate cannabis establishments on the basis that cannabis is illegal under federal law. 40
(b) An applicant for a professional or occupational license may not be denied a license 41
based on previous employment related to cannabis establishments operating in accordance with 42
State law. 43
"§ 18D-512. Private property and tenant rights. 44
(a) Except as provided in this section, the provisions of this Chapter do not require any 45
person, corporation, or any other entity that occupies, owns, or controls a property to allow the 46
consumption, cultivation, display, sale, or transfer of cannabis on or in that property. 47
(b) Except as provided in this section, a landlord or property manager may not refuse to 48
rent to a tenant, or otherwise discriminat e against the tenant, based on a past conviction for a 49
cannabis offense. 50
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 11
(c) Except as provided in this section, in the case of the rental of a residential dwelling , 1
a landlord or property manager may not prohibit the possession of cannabis or the consumption 2
of cannabis by nonsmoked means. 3
(d) Subsections (a) through (c) of this section do not apply if any of the following 4
requirements are met: 5
(1) The tenant is not leasing the entire dwelling. 6
(2) The residence is incidental to detention or the provision of medical, geriatric, 7
educational, counseling, religious, or similar service. 8
(3) The residence is a transitional housing or sober living facility. 9
(4) Failing to prohibit cannabis possession or consumption would violate federal 10
law or regulations or cause the landlord to lose a monetary or licensing-related 11
benefit under federal law or regulations. 12
(e) After a warning, a landlord or property manager may take action against a tenant if 13
the tenant's use of cannabis creates an odor that interferes with others ' peaceful enjoyment of 14
their home or property. 15
"§ 18D-513. Contracts enforceable. 16
It is the public policy of this State that contracts related to the operation of a cannabis 17
establishment registered pursuant to this Chapter should be enforceable. It is the public policy of 18
this State that no contract entered into by a cannabis establishment or its employees or agents as 19
permitted pursuant to a valid registration, or by those who allow property to be used by a cannabis 20
establishment, its employees, or its agents as permitted pursuant to a valid registration, shall be 21
unenforceable on the basis that cultivating, obtaini ng, manufacturing, distributing, dispensing, 22
transporting, selling, possessing, or using cannabis or hemp is prohibited by federal law. 23
"§ 18D-514. Respecting State law. 24
(a) No law enforcement officer employed by an agency that receives State or local 25
government funds shall expend any State or local resources, including the officer's time, to effect 26
any arrest or seizure of cannabis, or conduct any investigation , on the sole basis of activity the 27
officer believes to constitute a violation of federal law if the officer has reason to believe that 28
such activity is in compliance with this Chapter, nor shall any such officer expend any State or 29
local resources, including the officer 's time, to provide any information or logistical support 30
related to such activity to any federal law enforcement authority or prosecuting entity. 31
(b) No agency or political subdivision of the State may rely on a violation of federal law 32
related to cannabis as the sole basis for taking an adverse action against a person. 33
(c) For the purposes of State law, actions related to cannabis are considered lawful as 34
long as they are in accordance with this Chapter. 35
"§ 18D-515. Rulemaking. 36
(a) Not later than 180 days after the effective date of this Chapter, the Commission shall 37
adopt rules necessary for implementation of thi s Chapter. Such rules shall not prohibit the 38
operation of cannabis establishments, either expressly or through application, nor require such a 39
high investment of risk, money, time, or any other resource or asset that the operatio n of a 40
cannabis establishment is not worthy of being carried out in practice by a reasonab ly prudent 41
businessperson. Such regulations shall include all of the following: 42
(1) Procedures for the issuance, renewal, suspension, and revocation of a 43
registration to operate a cannabis establishment, with such procedures subject 44
to all requirements of Chapter 150B of the General Statutes. 45
(2) Rules, procedures, and policies to promote and encourage full participation in 46
the regulated cannabis industry by people from communities that have 47
previously been disproportionately harmed by cannabis prohibition and 48
enforcement and to positively impac t those communities, which shall r eflect 49
input from the Office of Community Reinvestment , including all of the 50
following: 51
General Assembly Of North Carolina Session 2025
Page 12 Senate Bill 350-First Edition
a. Conducting necessary and appropriate outreach to diverse groups that 1
may qualify for participation in activities under this Chapter. 2
b. Requiring each cannabis estab lishment to establish and adhere to 3
policies that encourage diversity in employment, contracting, and 4
other professional opportunities. 5
c. Requiring any cannabis establishment with 25 or more employees to 6
retain a diversity officer. 7
d. Requiring each cannabis establishment to report on the diversity of its 8
workforce, management, contracts, and ownership by January 1 of 9
each year. 10
e. Issuing rules allowing community reinvestment applicants to apply 11
for, and be licensed for, cannabis establishment registratio ns no less 12
than 180 days prior to applicants that are not community reinvestment 13
applicants. 14
(3) A Race to the Top scoring system to make the expansion of a cannabis 15
establishment to more than two locations contingent on the cannabis 16
establishment's contributions to opportunity and to benefiting the community. 17
The system must reflect input from the Office of Community Reinvestment 18
and shall include, but need not be limited to, considerations of diversity in the 19
cannabis establishment's ownership and workforce, including in management; 20
employment of reentering citizens with prior convictions; minority 21
ownership; compensation packages and benefits for workers; investing in 22
economically disadvantaged areas; whether the cannabis establishment 23
incorporates principles of environmental resiliency or sustainability, including 24
energy efficiency; or whether the principals are community reinvestment 25
applicants. 26
(4) A limit on the number of cannabis establishments a major investor may invest 27
in, unless each addit ional establishment is owned and operated by a 28
community reinvestment applicant. 29
(5) A schedule of reasonable application, registration, and renewal fees, provided 30
application fees shall not exceed five thousand dollars ($5,000), with this 31
upper limit adjusted annually for inflation, unless the Commission determines 32
a greater fee is necessary to carry out its responsibilities under this Chapter. 33
(6) Qualifications for registration that are directly and demonstrably related to the 34
operation of a cannabis establishment and that may not disqualify applicants 35
solely for cannabis offenses prior to the effective date of this Chapter. 36
(7) Security requirements. 37
(8) Requirements for the transportation and stor age of cannabis and cannabis 38
products by cannabis establishments. 39
(9) Requirements for the delivery of cannabis and cannabis products to 40
consumers, including a prohibition on business names, logos, and other 41
identifying language or images on delivery vehicles and a prohibition on 42
delivering to any address located on land owned by the federal government or 43
any address on land or in a building leased by the federal government. 44
(10) Employment and tr aining requirements, including requiring that each 45
cannabis establishment create an identification badge for each e mployee or 46
agent. These requirements may not disqualify applicants solely for cannabis 47
offenses prior to the effective date of this Chapter. 48
(11) Requirements designed to prevent the sale or diversion of cannabis and 49
cannabis products to persons under the age of 21. 50
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 13
(12) Requirements for cannabis and cannabis products sold or distributed by a 1
cannabis establishment, including prohibiting any misleading labeling and 2
requiring cannabis product labels to include all of the following: 3
a. The length of time it typically takes for the product to take effect. 4
b. A disclosure of ingredients and possible allergens. 5
c. A nutritional fact panel. 6
d. Requiring opaque, child-resistant packaging, which must be designed 7
or constructed to be significantly difficult for chil dren under 5 years 8
of age to open and not difficult for normal adults to use properly as 9
defined by 16 C.F.R. § 1700.20. 10
e. Requiring that edible cannabis pro ducts be clearly identifiable, when 11
practicable, with a standard symbol indicating that they conta in 12
cannabis. 13
(13) Health and safety regulations and standards for the manufacture of cannabis 14
products and both the indoor and outdoor cultivation of cannabis by cannabis 15
establishments. 16
(14) Restrictions on advertising, marketing, and signage, including, but not limited 17
to, a prohibition on mass -market campaigns that have a high likelihood of 18
reaching minors. 19
(15) Rules to create at least six tiers of cannabis cultivation facilities, based on the 20
size of the facility or the number of plants cultivated, and whether the 21
cultivation occurs outdoors, indoors, or in a greenhouse. Security regulations 22
and licensing fees must vary based on the size of the cultivation facility. 23
(16) Restrictions or prohibitions on additives to cannabis and cannabis -infused 24
products, including, but not limited to, those that are toxic or designed to make 25
the product more addictive. 26
(17) Prohibitions on products that are designed to make the product more appealing 27
to children, including prohibiting the use of any images designed or likely to 28
appeal to minors, including cartoons, toys, animals, or children, and any other 29
likeness to images, characters, or phrases that are popularly used to advertise 30
to children. 31
(18) Restrictions on the use of pesticides that are injurious to human health. 32
(19) Regulations governing visits to cannabis cultivation facilities and cannabis 33
product manufacturing facilities, including requiring the cannabis 34
establishment to log visitors. 35
(20) A definition of the amount of delta -9 tetrahydrocannabinol that constitutes a 36
single serving in a cannabis product. 37
(21) Standards for the safe manufacture of cannabis extracts and concentrates. 38
(22) Requirements that educational materials be disseminated to consumers who 39
purchase cannabis-infused products. 40
(23) Requirements for random sample testing to ensure quality control, including 41
by ensuring that cannabis and cannabis -infused products are accurately 42
labeled for potency. Unless the Commission determines that remediation or 43
treatment is sufficient to ensure product safety, the testing analysis shall 44
include testing for residual solvents, poisons, or toxins ; harmful chemicals; 45
dangerous molds or mildew ; filth; and harmful microbials such as E. coli or 46
salmonella and pesticides. 47
(24) Standards for the operation of cannabis testing facilities, including 48
requirements for equipment and qualifications for personnel. 49
(25) Civil penalties for the failure to comply with rules made pursuant to this 50
Chapter. 51
General Assembly Of North Carolina Session 2025
Page 14 Senate Bill 350-First Edition
(26) Procedures for collecting taxes levied on cannabis establishments. 1
(27) Requirements for on-site consumption establishments, including for security, 2
ventilation, odor control, and consumption by patrons. These rules may 3
include a prohibition on smoking indoors. 4
(b) After consulting with researchers knowled geable about the risks and benefits of 5
cannabis and providing an opportunity for public comment, the Commission shall develop a 6
scientifically accurate safety information label, handout, or both, which shall be available to each 7
adult-use cannabis consumer. The label or handout shall include both of the following: 8
(1) Advice about the potential risks of cannabis, including any of the following: 9
a. The risks of driving under the influence of cannabis and the fact that 10
doing so is illegal. 11
b. Any adverse effects unique to younger adults, including related to the 12
developing mind. 13
c. Potential adverse events and other risks. 14
d. Risks of using cannabis during pregnancy or breastfeeding. 15
(2) The need to safeguard all cannabis and cann abis products from children and 16
pets. 17
(c) The Commission shall review and update the safety information materials at least 18
once every two years to ensure they remain accurate. The review period shall include soliciting 19
input from researchers knowledgeable about the risks and benefits of cannabis and an opportunity 20
for public comment. 21
(d) In order to ensure that individual privacy is protected, the Commission shall not 22
require a consumer to provide a retail cannabis store with personal information other than 23
government-issued identification to determine the consumer's age and a retail cannabis store shall 24
not be required to acquire and record personal information about consumers." 25
SECTION 1.1.(b) This section becomes effective January 1, 2026, and applies to 26
offenses committed on or after that date. 27
SECTION 1.2.(a) Subchapter I of Chapter 105 of the General Statutes is amended 28
by adding a new Article to read: 29
"Article 2F. 30
"Tax on Cannabis. 31
"§ 105-113.150. Definitions. 32
The definitions in G.S. 18D-101, to the extent they do not conflict with this Article, and the 33
following definitions apply in this Article: 34
(1) Cannabis. – All parts of the plant of the genus cannabis, the seeds thereof, the 35
resin extracted from any part of the plant, and every compound, manufacture 36
salt, derivative, mixture, or preparation of the plant, its seeds, or its resin , 37
including cannabis concentrate. "Cannabis" does not include hemp, nor does 38
it include fiber produced from the stalks, oil, or cake made from the seeds of 39
the plant, or sterilized seed of the plant, which is incapable of germination. 40
(2) Cannabis concentrate. – Any form of concent ration, including extracts, oils, 41
tinctures, shatter, and waxes, that is extracted from cannabis. 42
(3) Cannabis edible product. – A product containing cannabis or cannabis 43
concentrate, combined with other ingredients, that is intended for use or 44
consumption through ingestion, including sublingual or oral absorption. 45
(4) Cannabis p lant material. – For purposes of this Article, "cannabis plant 46
material" means cannabis flower, cannabis trim and all parts of any plant or 47
species of the genus cannabis, or any infra specific taxon thereof, excluding a 48
growing plant, and the seeds thereof. "Cannabis plant material " does not 49
include hemp. 50
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 15
(5) Manufacturer. – A cannabis produc t manufacturing facility as defined in 1
G.S. 18D-101. 2
(6) THC. – Tetrahydrocannabinol, including, but not limited to, delta -7, 3
delta-8-tetrahydrocannabinol, delta -9-tetrahydrocannabinol, and 4
delta-10-tetrahydrocannabinol, and any material, compound, mixture , or 5
preparation which contains their salts, isomers, and salts of isomers, whenever 6
the existence of such salts, isomers, and salts of isomers is possible within the 7
specific chemical designation, regardless of the source, except (i) dronabinol 8
substituted in sesame oil and encapsulated in a soft gelatin capsule in a federal 9
Food and Drug Administration or successor agency approved product or (ii) 10
any tetrahydrocannabinol product that has been approved by the federal Food 11
and Drug Administration or success or agency to have a medical use and 12
reclassified in any schedule of controlled substances or unscheduled by the 13
federal Drug Enforcement Administration or successor agency. 14
(7) Total THC. – The sum of the percentages by weight of tetrahydrocannabinolic 15
acid, multiplied by eight hundred seventy -seven-thousandths, plus the 16
percentage weight of THC. 17
"§ 105-113.151. Excise tax on cannabis. 18
An excise tax is levied on cannabis and cannabis products possessed by manufacturers at the 19
following rates: 20
(1) Cannabis plant material, at the rate of six hundred twenty-five-thousandths of 21
one cent (0.00625 of 1 ¢) per milligram of total THC, as reflected on the 22
product label. 23
(2) Cannabis edible products , at the rate of two hundred seventy-five 24
ten-thousandths of one cent (0.0275 of 1¢) per milligram of total THC, as 25
reflected on the product label. 26
(3) Cannabis, other than cannabis plant material or cannabis edible products, at 27
the rate of nine-tenths of one cent (0.9 of 1¢) per milligram of total THC, as 28
reflected on the product label. 29
"§ 105-113.152. When tax payable; revenue stamps. 30
(a) The tax imposed by this Article is payable by any manufacturer who possesses 31
cannabis or cannabis products upon which the tax has not been paid, as evidence by a stamp. The 32
tax is payable within 48 hours after the manufacturer acquires actual or constructive possession 33
of the non-tax-paid cannabis or cannabis products taxed under G.S. 105-113.151, exclusive of 34
Saturdays, Sundays, and legal holidays of this State, in which case the tax is payable on the next 35
working day. Upon payment of the tax, the manufacturer shall permanently affix the appropriate 36
stamps to the cannabis or cannabis product. Once the tax due on the cannabis or cannabis product 37
has been paid, no additional tax is due under this Article even though the cannabis or cannabis 38
product may be handled by other manufacturers. 39
(b) The Secretary shall issue stamps to affix to cannabis and cannabis products taxed 40
under G.S. 105-113.151 to indicate payment of the tax required by this Article. Manufacturers 41
shall report the taxes payable under this Article at the time and on the return prescribed by the 42
Secretary. Upon payment of the tax, the Secretary shall issue stamps in an amount equal to the 43
amount of the tax paid . Taxes may be paid, and stamps may be issued in a manner determined 44
by the Secretary. 45
"§ 105-113.153. Administration. 46
Article 9 of this Chapter applies to this Article. 47
"§ 105-113.154. Assessments. 48
Notwithstanding any other provision of law, an assessment against a manufacturer who 49
possesses cannabis or cannabis products subject to tax under this Article to which a stamp has 50
not been affixed as required by this Article shall be made as provided in this section. The 51
General Assembly Of North Carolina Session 2025
Page 16 Senate Bill 350-First Edition
Secretary shall assess a tax, applicable penalties, and interest based on personal knowledge or 1
information available to the Secretary. The Secretary shall notify the manufacturer in writing of 2
the amount of the tax, penalty, and interest due, and demand shall be either mailed to the 3
manufacturer at the manufacturer's last known address or served on the manufacturer in person. 4
If the manufacturer does not pay the tax, penalty, and interest immediately upon receipt of the 5
notice and demand, the Secretary shall collect the tax, penalty, and interest pursuant t o the 6
jeopardy collection procedures in G.S. 105-241.23 or the general collection procedures in 7
G.S. 105-242, including causing execution to be issued immediately against the personal 8
property of the manufacturer, unless the manufacturer files with the Sec retary a bond in the 9
amount of the asserted liability for the tax, penalty, and interest. The Secretary shall use all means 10
available to collect the tax, penalty, and interest from any property in which the manufacturer 11
has a legal, equitable, or beneficial interest. The manufacturer may seek review of the assessment 12
as provided in Article 9 of this Chapter. 13
"§ 105-113.155. Confidentiality of information. 14
Information obtained by the Department in the course of administering the tax imposed by 15
this Article, including information on whether the Department has issued a revenue stamp to a 16
person, is confidential tax information and is subject to the provisions of G.S. 105-259. 17
"§ 105-113.156. Use of tax proceeds. 18
(a) Special Account. – The Cannabis Regulation Account is established as a special 19
nonreverting account. The Secretary shall credit the proceeds of the tax levied by this Article to 20
the Account. 21
(b) Distribution. – The Secretary shall distribute unencumbered tax proceeds in the 22
Cannabis Regulation Account (Account) on a quarterly or more frequent basis. Tax proceeds in 23
the Account are unencumbered when they are collectible under G.S. 105-241.22. The Secretary 24
shall distribute the unencumbered tax proceeds in the Account as follows: 25
(1) Fifty percent (50%) to the North Ca rolina Alcoholic Beverage Control 26
Commission for purposes consistent with the regulation of cannabis in 27
accordance with Chapter 18D of the General Statutes. 28
(2) Twenty-five percent (25%) to the Community Reinvestment and Repair Fund 29
established under Chapter 18D of the General Statutes. 30
(3) Ten percent (10%) to the Social Opportunity Fund established under Chapter 31
18D of the General Statutes. 32
(4) Three percent (3%) to the Cannabis Education and Technical Assistance Fund 33
established under Chapter 18D of the General Statutes. 34
(5) Seven percent (7%) to the Department of Health and Human Services for use 35
in evidence -based, voluntary programs for the prevention or treatment of 36
substance abuse. 37
(6) Two percent (2%) to the Department of Health and Human Services for a 38
scientifically and medically accurate public education campaign educating 39
youth and adults about the health and safety ri sks of alcohol, tobacco, 40
cannabis, and other substances, including the risks of driving while impaired. 41
(7) Two percent (2%) to the Department of Health and Human Services to fund 42
diverse scientific, academic, or medical research on cannabis or 43
endocannabinoids, including research exploring the benefits of cannabis, 44
provided that all funded research data, results, and papers shall be released 45
into the public domain and shall be published for free and open access by the 46
public and by other researchers. 47
(8) Up to one percent (1%) to the Department of Public Safety to fund Advanced 48
Roadside Impaired Driving Enforcement and drug recognition expert training. 49
(9) Any remaining funds shall be deposited in the General Fund." 50
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 17
SECTION 1.2.(b) This section is effectiv e for taxable years beginning on or after 1
January 1, 2026. 2
3
PART II. LEGALIZATION OF MEDICAL CANNABIS 4
SECTION 2.1. Chapter 90 of the General Statutes is amended by adding a new 5
Article to read: 6
"Article 44. 7
"North Carolina Medical Cannabis Act. 8
"§ 90-748. Short title. 9
This Article shall be known and may be cited as the "North Carolina Medical Cannabis Act." 10
"§ 90-749. Definitions. 11
The following definitions apply in this Article: 12
(1) Department. – The North Carolina Department of Health and Human 13
Services. 14
(2) Patient. – A person who has been issued a written certification described in 15
G.S. 90-751. 16
(3) Physician. – A person who is licensed to prescribe drugs under the laws of this 17
State. 18
"§ 90-750. Protections for the medical use of cannabis. 19
(a) A patien t shall not be subject to arrest, prosecution, or penalty in any manner, or 20
denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by 21
a business or occupational or professional licensing board or bureau, for the possession or 22
purchase of cannabis for medical use by the patient if the quantity of usable cannabis possessed 23
or purchased does not exceed an adequate supply, as determined by the North Carolina Medical 24
Care Commission. 25
(b) A designated caregiver shall not be subject to arrest, prosecution, or penalty in any 26
manner, or denied any right or privilege, including imposition of a civil penalty or disciplinary 27
action by a business or occupational or professional licensing board or bureau, for the possession 28
or purchase of cannabis for medical use by the patient if the quantity of usable cannabis possessed 29
or purchased does not exceed an adequate supply for the patient, as determined by the North 30
Carolina Medical Care Commission. 31
(c) Subsection (a) of this section does not apply to a patient under 18 years of age, unless 32
all of the following criteria are met: 33
(1) The patient's physician has explained the potential risks and benef its of the 34
medical use of cannabis to the patient and to a parent, guardian, or person 35
having legal custody of the patient. 36
(2) A parent, guardian, or person having legal custody of the patient consents in 37
writing to (i) allow the patient 's medical use of cannabis, (ii) serve as the 38
patient's designated caregiv er, and (iii) control the dosage and frequency of 39
the medical use of cannabis by the patient. 40
(d) A patient or a designated caregiver shall be granted the full legal protections provided 41
by this Article as long as the patient or designated caregiver is in possession of a registry 42
identification card issued by the Department of Health and Human Services. If the patient or 43
designated caregiver is not in possession of a registry identification card, the individual shall be 44
given an opportunity to produce the registry identification card before the initiation of any arrest, 45
criminal charges, or other penalties. 46
(e) A patient or a designated caregiver is presumed to be engaged in the medical use of 47
cannabis if the patient or designated caregiver is in possession of a registry identification card 48
and an amount of cannabis that does not exceed the patient's adequate supply. This presumption 49
may be rebutted only by evidence that the patient or designated caregiver engaged in conduct 50
General Assembly Of North Carolina Session 2025
Page 18 Senate Bill 350-First Edition
related to cannabis for a purpose other than alleviating a medical condition of the patient or 1
symptoms associated with the medical condition. 2
(f) A designated caregiver may receive reimbursement for costs associated with assisting 3
a patient in the medical use of cannabis. Re imbursement for these costs does not constitute the 4
sale of a controlled substance under Article 5 of this Chapter of the General Statutes. 5
(g) A school, employer, or landlord shall neither refuse to enroll, employ, or lease to nor 6
otherwise penalize a patient or designated caregiver solely because of (i) the individual 's status 7
as a patient or a designated caregiver or (ii) the presence of cannabis metabolites resulting from 8
medical use of cannabis in the individual's bodily fluids. 9
(h) For the purposes of medical care, including organ transplants , a patient's authorized 10
use of cannabis in accordance with this Article shall be treated in the same manner as the 11
authorized use of any other medication used at the direction of a physician and shall not constitute 12
the use of an illegal substance. 13
(i) A physician shall not be subject to arrest, prosecution, or penalty in any manner, or 14
denied any right or privilege, or subject to increased monitoring or disciplinary action by the 15
North Carolina Medical Board or any other business or occupational or professional licensing 16
board or bureau for either of the following: 17
(1) Advising a patient about the risks and benefits of the medical use of cannabis 18
or that the patient may benefit from the medical use of cannabis if, in the 19
physician's medical judgment, the potential benefits of the medical use of 20
cannabis would likely outweigh the health risks for that particular patient. 21
(2) Providing the patient with valid documentation, based upon the physician 's 22
assessment of that patient's medical history and current medical condition, that 23
the potential benefits of the me dical use of cannabis would likely outweigh 24
the health risks for that particular patient. 25
(j) A physician shall not be subject to arrest, prosecution, or penalty in any manner, or 26
denied any right or privilege, or subject to disciplinary action by a business or occupational or 27
professional licensing board or bureau for discussing with a patient the benefits or health risks of 28
the medical use of cannabis or the interaction of cannabis with other substances. 29
(k) State and local law enforcement officers shall not harm, neglect, injure, or destroy an 30
individual's interest in or right to property that is possessed, owned, or used in connection with 31
the medical use of cannabis, or acts incidental to the medical use of cannabis, while the property 32
is in the possession of State or local law enforcement officials as a result of a seizure of the 33
property in connection with the claimed medical use of cannabis. A person does not forfei t any 34
right or interest in property seized i n connected with the medical use of cannabis under any 35
provision of State law providing for the forfeiture of property , unless the forfeiture is part of a 36
sentence imposed upon the person as a result of a conviction of a criminal violation of this Article 37
or entry of a plea of gui lty to such violation. Cannabis, paraphernalia, or other property seized 38
from a patient or designated caregiver in connection with the claimed medical use of cannabis 39
shall be returned immediately upon the determination by a court, prosecutor, or law enforcement 40
officer that the patient or designated caregiver is entitled to the protections of this Article. In 41
making this determination, the court, a prosecutor, or a law enforcement officer shall consider as 42
evidence the failure of law enforcement officers to actively investigate the case, a decision not 43
to prosecute, the dismissal of charges, or acquittal. 44
(l) A person shall not be denied custody of, or visitation or parenting time with, a minor 45
for conduct allowed under this Article. 46
(m) There is no presumption of neglect or child endangerment for conduct allowed under 47
this Article. 48
(n) No person shall be subject to arrest or prosecution for constructive possession, 49
conspiracy, aiding and abetting, being an accessory, or any other offense, for simply being in the 50
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 19
presence or vicinity of the medical use of cannabis as permitted under this Article or for assisting 1
a patient with using or administering cannabis. 2
(o) Possession of or application for a registry identification card shall not alone constitute 3
probable cause to search the person or the property of the person possessing or applying for a 4
registry identification card or otherwise subject the person or the person's property to inspection 5
by any government agency. 6
(p) If an individual being investigated by a law enforcement officer employed by a 7
State-funded or locally funded law enforcement agency credibly asserts during the course of the 8
investigation that the individual is a patient or designated caregiver, neither the law enforcement 9
officer nor the law enforcement agency shall provide any information, except as required by 10
federal law or the United States Constitution, from any cannabis -related investigation of the 11
individual to any law enforcement authority that does not recognize the protections of this 12
Article. Any prosecution of the individual for a violation of this Article shall be conducted 13
pursuant to the laws of this State. 14
(q) Nothing in this Article sh all be construed to extend the prote ctions of this Article to 15
any person, including a patient or designated caregiver, to allow that person to acquire, possess, 16
manufacture, produce, use, sell, distribute, dispense, or transport cannabis in a manner that is not 17
consistent with this Article. 18
"§ 90-751. Registry identification cards for patients and designated caregivers. 19
(a) The Department shall issue a registry identification card to any patient or designated 20
caregiver who meets the requirements of this section. 21
(b) The Department shall not issue o r renew a registry identification card to a patient 22
under 18 years of age unless each of the following criteria is met: 23
(1) The patient's physician has explained the potential risks and benefits of the 24
medical use of cannabis to the patient and to a parent , guardian, or person 25
having legal custody of the patient. 26
(2) A parent, guardian, or person having legal custody of the patient consent s in 27
writing to (i) allow the patie nt's medical use of cannabis, (ii) serve as one of 28
the patient 's designated caregivers, and (iii) control the acquisition of the 29
cannabis, the dosage, and the frequency of medical use of cannabis by the 30
patient. 31
(c) The Department shall verify the information contained in a registry identification card 32
application or renewal application submitted pursuant to this section and shall approve or deny 33
an application or renewal application within 45 days after receipt. The Department may deny a 34
registry identification card application or renewal application only if the applicant fails to provide 35
the information required pursuant to this section or if the Department determines that the 36
application or renewal application contains false information. If the Department fails to approve 37
or deny a registration application or renewal application submitted pursuant to this section within 38
45 days after receipt, the application or renewal application shall be deemed approved and a copy 39
of the application or renewal application together with proof of receipt by the Department at least 40
45 days prior to the date this information is presented in lieu of registry identification card shall 41
be deemed a valid registry identification card. 42
(d) The Department may issue a registry identification card to a maximum of two 43
designated caregivers named in a patient's approved application. 44
(e) The Department shall issue a registry identification card to an applicant within five 45
days after approving an application or renewal application. The application or renewal 46
application expires two years after the date of issuance. 47
(f) Each registry identification card shall contain at least all of the following information: 48
(1) The date of issuance. 49
(2) The date of expiration. 50
(3) A random registry identification number. 51
General Assembly Of North Carolina Session 2025
Page 20 Senate Bill 350-First Edition
(4) A photograph of the registry identification cardholder. 1
(g) Persons issued registry identification cards shall be subject to the following: 2
(1) A patient who has been issued a registry identifi cation card shall notify the 3
Department of any change in the patient 's name, address, or designated 4
caregiver and submit a ten dollar ($10.00) fee to the Department within 15 5
days after the change occurs. A patient who fails to notify the Department of 6
any of these changes within the specified time frame commits an infraction 7
and is subject to a fine not to exceed more than one hun dred fifty dollars 8
($150.00). 9
(2) A designated caregiver shall notify the Department of any change in name or 10
address and submit a ten dollar ($10.00) fee to the Department within 15 days 11
after the change occurs. A designated caregiver who fails to notify the 12
Department of any of these changes within the specified time frame commits 13
an infraction and is subject to a fine not to exc eed one hundred fifty dollars 14
($150.00). 15
(3) When a patient or designated caregiver notifies the Department of any change, 16
as required by this subsection, the Department shall issue the patient and each 17
designated caregiver a new registry identification ca rd within 10 days after 18
receiving the updated information and the ten dollar ($10.00) fee. 19
(4) When a patient who possesses a registry identification card notifies the 20
Department of a change in designated caregiver, the Department shall notify 21
the designated caregiver of record of the change within 15 days after receiving 22
notification of the change. The protections afforded under this Article to the 23
designated caregiver of record shall expire 30 days after the designated 24
caregiver of record is notified by the Department of the change in designated 25
caregiver. 26
(5) If a patient or a designated caregiver loses a registry identification card, the 27
cardholder shall notify the Department within 15 days after losing the card. 28
The notification shall include a ten dollar ($10.00) replacement fee for a new 29
card. Within five days after receiving notification of a lost registry 30
identification card, the Department shall issue th e cardholder a new registry 31
identification card with a new random identification number. 32
(h) If the Department determines that a patient or designated caregiver has willfully 33
violated any provision of this Article , the Department may suspend or revoke the patient 's or 34
designated caregiver's registry identification card. 35
(i) Applications and supporting information submitted by patients, including information 36
regarding their designated caregivers and physicians, are confidentia l and protected under the 37
federal Health Insurance Portability and Accountability Act of 1996. 38
(j) The Department shall maintain a confidential list of the persons to whom the 39
Department has issued registry identification cards. I ndividual names and other identifying 40
information on the list are confidential, exempt from the provisions of Chapter 132 of the General 41
Statutes, and are not subject to disclosure, except to authorized employees of the Department as 42
necessary to perform official duties of the Department. 43
(k) The Department shall verify to law enfo rcement personnel whether a registry 44
identification card is valid solely by confirming the validity of the random registry identification 45
number and the name of the person whom the Department has assigned the random registry 46
identification number. 47
(l) Any person, including an employee or official of the Department or another State 48
agency or local government, who breaches the confidentiality of information obtained pursuant 49
to this section is guilty of a Class 1 misdemeanor; however, any fine imposed for a violation 50
under this subsection shall not exceed one thousand dollars ($1,000). 51
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 21
(m) Nothing in this section shall be construed to prevent Department employees from 1
notifying law enforcement officers about falsified or fraudulent information submitted to the 2
Department by any individual in support of an application for a registry identification card. 3
(n) Article 4 of Chapter 150B of the General Statutes governs judicial review of an 4
administrative decision made under this section. 5
(o) Not later than 120 days after the effective date of this act, the North Carolina Medical 6
Care Commission shall adopt rules to implement the provisions of this section, including defining 7
what constitutes a qualifying medical condition and an adequate supply of medical cannabis. The 8
rules shall establish requirements for the issuance of registry identification cards to patients and 9
designated caregivers, which shall include at least all of the following: 10
(1) Written certification of a statement in a patient 's medical records or a 11
statement signed by a physician with whom the patient has a bona fide 12
physician-patient relationship indicating that, in the physician 's professional 13
opinion, the patient is likely to receive therapeutic or palliative benefit from 14
the medical use of cannabis to treat or alleviate the patient's qualifying medical 15
condition or symptoms associated with the qualifying medical condition and 16
the potential health benefits of the medical use of cannabi s would likely 17
outweigh the health risks for the patient. 18
(2) An application for renewal fee. 19
(3) The name, address, and date of birth of the patient, except that if a patient is 20
homeless, no address is required. 21
(4) The name, address, and telephone number of the patient's physician. 22
(5) The name, address, and date of birth of each of the patient 's designated 23
caregivers, if any." 24
SECTION 2.2. This Part becomes effective January 1, 2026, and applies to acts 25
committed on or after that date. 26
27
PART III. AUTOMATIC EXPUNCTION OF MARIJUANA OFFENSES 28
SECTION 3.1. Article 5 of Chapter 15A of the General Statutes is amended by 29
adding a new section to read: 30
"§ 15A-145.8B. Automatic expunction of certain marijuana offenses. 31
(a) If a person was charged with an offense involving marijuana or hashish that is legal 32
under Chapter 18D of the General Statutes, and such person was convicted, such conviction shall 33
be ordered to be automatically expunged no later than July 1, 2028 , in the manner set forth in 34
this section. 35
(b) The Administrative Office of the Courts shall deter mine which offenses meet the 36
criteria for expunction se t forth in subsection (a) of this section. Upon completing the 37
determination required under this subsection, the Administrative Office of the Courts shall 38
provide an electronic list of the offenses to the clerk of each superior court. Upon receipt of t he 39
electronic list required under this subsection, the clerk of each superior court shall prepare an 40
order of expungement for each case that meets the criteria set forth in subsection (a) of this section 41
and was finalized in his or her court. Upon completion of the order of expungement, the court 42
shall order the expunction. Upon order of expungement, the clerk shall forward the petition to 43
the Administrative Office of the Courts. 44
(c) No person as to whom such an order has been entered under this section shall be held 45
thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 46
giving a false statement or response to any inquiry made for any purpose, b y reason of the 47
person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 48
or trial. 49
(d) The court shall also order that the conviction ordered expunged under this section be 50
expunged from the records of the court and d irect all law enforcement agencies bearing record 51
General Assembly Of North Carolina Session 2025
Page 22 Senate Bill 350-First Edition
of the same to expunge their records of the conviction. The clerk shall notify State and local 1
agencies of the court's order as provided in G.S. 15A-150. 2
(e) Any other applicable State or local government agency shall expunge from its records 3
entries made as a result of the conviction ordered expunged under this section. The agency shall 4
also reverse any administrative actions taken agai nst a person whose record is expunged under 5
this section as a result of the charges or convictions expunged. This subsection shall not apply to 6
the Department of Justice for DNA records and samples stored in the State DNA Database and 7
the State DNA Databank." 8
SECTION 3.2. The Administrative Office of the Courts shall provide the list 9
required under G.S. 15A-145.8B(b), as enacted by this Part, by October 1, 2027. 10
SECTION 3.3. This Part becomes effective January 1, 2026. 11
12
PART IV. CONFORMING CHANGES 13
SECTION 4.1. G.S. 90-87(16) is repealed. 14
SECTION 4.2. G.S. 90-94 is repealed. 15
SECTION 4.3. G.S. 90-95 reads as rewritten: 16
"§ 90-95. Violations; penalties. 17
… 18
(b) Except as provided in subsections (h) and (i) of this section, any person who violates 19
G.S. 90-95(a)(1) with respect to: 20
… 21
(2) A controlled substance classified in Schedule III, IV, V, or VI or V shall be 22
punished as a Class I felon, except that the sale of a controlled substance 23
classified in Schedule III, IV, V, or VI or V shall be punished as a Class H 24
felon. The transfer of less than 5 grams of marijuana for no remuneration shall 25
not constitute a delivery in violation of G.S. 90-95(a)(1). 26
… 27
(d) Except as provided in subsections (h) and (i) of this section, any person who violates 28
G.S. 90-95(a)(3) with respect to: 29
… 30
(4) A controlled substance classified in Schedule VI shall be guilty of a Class 3 31
misdemeanor, but any sentence of imprisonment imposed must be suspended 32
and the judge may not require at the time of sentencing that the defendant 33
serve a period of impriso nment as a special condition of probation. If the 34
quantity of the controlled substance exceeds one -half of an ounce 35
(avoirdupois) of marijuana or one-twentieth of an ounce (avoirdupois) of the 36
extracted resin of marijuana, commonly known as hashish, the violation shall 37
be punishable as a Class 1 misdemeanor. If the quantity of the controlled 38
substance exceeds one and one -half ounces (avoirdupois) of marijuana, or 39
three-twentieths of an ounce (avoirdupois) of the extracted resin of marijuana, 40
commonly known as hashish, or if the controlled substance consists of any 41
quantity of synthetic tetrahydrocannabinols or tetrahydrocannabinols isolated 42
from the resin of marijuana, the violation shall be punishable as a Class I 43
felony. 44
… 45
(e) The prescribed punishment and degree of any offense under this Article shall be 46
subject to the following conditions, but the punishment for an offense may be increased only by 47
the maximum authorized under any one of the applicable conditions: 48
… 49
(8) Any person 21 years of age or older who commits an offense under 50
G.S. 90-95(a)(1) on property used for a child care center, or for an elementary 51
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 23
or secondary school or within 1,000 feet of the boundary of real property used 1
for a child care center, or for an elementary or secondary school sh all be 2
punished as a Class E felon. For purposes of this subdivision, the transfer of 3
less than five grams of marijuana for no remuneration shall not constitute a 4
delivery in violation of G.S. 90-95(a)(1). For purposes of this subdivision, a 5
child care center is as defined in G.S. 110-86(3)a., and that is licensed by the 6
Secretary of the Department of Health and Human Services. 7
… 8
(10) Any person 21 years of age or older who commits an offense under 9
G.S. 90-95(a)(1) on property that is a public park or wi thin 1,000 feet of the 10
boundary of real property that is a public park shall be punished as a Class E 11
felon. For purposes of this subdivision, the transfer of less than five grams of 12
marijuana for no remuneration shall not constitute a delivery in violatio n of 13
G.S. 90-95(a)(1). 14
… 15
(h) Notwithstanding any other provision of law, the following provisions apply except as 16
otherwise provided in this Article: 17
(1) Any person who sells, manufactures, delivers, transports, or possesses in 18
excess of 10 pounds (avoirdu pois) of marijuana shall be guilty of a felony 19
which felony shall be known as "trafficking in marijuana" and if the quantity 20
of such substance involved: 21
a. Is in excess of 10 pounds, but less than 50 pounds, such person shall 22
be punished as a Class H felon and shall be sentenced to a minimum 23
term of 25 months and a maximum term of 39 months in the State's 24
prison and shall be fined not less than five thousand dollars ($5,000); 25
b. Is 50 pounds or more, but less than 2,000 pounds, such person shall be 26
punished as a Class G felon and shall be sentenced to a minimum term 27
of 35 months and a maximum term of 51 months in the State's prison 28
and shall be fined not less than twenty-five thousand dollars ($25,000); 29
c. Is 2,000 pounds or more, but less than 10,000 pounds , such person 30
shall be punished as a Class F felon and shall be sentenced to a 31
minimum term of 70 months and a maximum term of 93 months in the 32
State's prison and shall be fined not less than fifty thousand dollars 33
($50,000); 34
d. Is 10,000 pounds or more, such person shall be punished as a Class D 35
felon and shall be sentenced to a minimum term of 175 months and a 36
maximum term of 222 months in the State's prison and shall be fined 37
not less than two hundred thousand dollars ($200,000). 38
…." 39
SECTION 4.4. G.S. 90-113.22A is repealed. 40
SECTION 4.5. G.S. 90-113.21 reads as rewritten: 41
"§ 90-113.21. General provisions. 42
(a) As used in this Article, "drug paraphernalia" means all equipment, products and 43
materials of any kind that are used to facilitate, or intended or designed to facilitate, violations of 44
the Controlled Substances Act, including planting, propagating, cultivating, growing, harvesting, 45
manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, 46
packaging, repackaging, storing, containing, and concealing controlled substances and injecting, 47
ingesting, inhaling, or otherwise introducing controlled substances into the human body. "Drug 48
paraphernalia" includes, but is not limited to, the following: 49
… 50
General Assembly Of North Carolina Session 2025
Page 24 Senate Bill 350-First Edition
(7) Separation gins and sifters for removing twigs and seeds from, or otherwise 1
cleaning or refining, marijuana; 2
… 3
(12) Objects for ingesting, inhaling, or otherwise introducing marijuana, cocaine, 4
hashish, or hashish oil cocaine into the body, such as: 5
a. Metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or 6
without screens, permanent screens, hashish heads, or punctured metal 7
bowls; 8
b. Water pipes; 9
c. Carburetion tubes and devices; 10
d. Smoking and carburetion masks; 11
e. Objects, commonly called roach clip s, for holding burning material, 12
such as a marijuana cigarette, material that has become too small or 13
too short to be held in the hand; 14
…." 15
SECTION 4.6. G.S. 105-113.106 reads as rewritten: 16
"§ 105-113.106. Definitions. 17
The following definitions apply in this Article: 18
… 19
(3) Dealer. – Any of the following: 20
a. A person who actually or constructively possesses more than 42.5 21
grams of marijuana, seven or more grams of any other controlled 22
substance other than marijuana that is sold by weight, or 10 or more 23
dosage units of any other controlled substance that is not sold by 24
weight. 25
b. A person who in violation of Chapter 18B of the General Statutes 26
possesses illicit spirituous liquor for sale. 27
c. A person who in violation of Chapter 18B of the General Statutes 28
possesses mash. 29
d. A person who in violation of Chapter 18B of the General Statutes 30
possesses an illicit mixed beverage for sale. 31
… 32
(6) Marijuana. – All parts of the plant of the genus Cannabis, whether growing or 33
not; the seeds of this plant; the resin extracted from any part of this plant; and 34
every compound, salt, derivative, mixture, or preparation of this plant, its 35
seeds, or its resin. 36
…." 37
SECTION 4.7. G.S. 105-113.107 reads as rewritten: 38
"§ 105-113.107. Excise tax on unauthorized substances. 39
(a) Controlled Substances. – An excise tax is levied on controlled substances possessed, 40
either actually or constructively, by dealers at the following rates: 41
(1) At the rate of forty cents (40¢) for each gram, or fraction thereof, of harvested 42
marijuana stems and stalks that have been separated from and are not mixed 43
with any other parts of the marijuana plant. 44
(1a) At the rate of three dollars and fifty cents ($3.50) for each gram, or fraction 45
thereof, of marijuana, other than separated stems and stalks taxed under 46
subdivision (1) of this [sub]section, or synthetic cannabinoids. 47
(1b) At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of 48
cocaine. 49
(1c) At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of any 50
low-street-value drug that is sold by weight. 51
General Assembly Of North Carolina Session 2025
Senate Bill 350-First Edition Page 25
(2) At the rate of two hundred dollars ($200.00) for each gram, or fraction thereof, 1
of any other controlled substance that is sold by weight. 2
(2a) At the rate of fifty dollars ($50.00) for each 10 dosage units, or fr action 3
thereof, of any low-street-value drug that is not sold by weight. 4
(3) At the rate of two hundred dollars ($200.00) for each 10 dosage units, or 5
fraction thereof, of any other controlled substance that is not sold by weight. 6
(a1) Weight. – A quantity of marijuana or other controlled substance is measured by the 7
weight of the substance whether pure or impure or dilute, or by dosage units when the substance 8
is not sold by weight, in the dealer's possession. A quantity of a controlled substance is dilute if 9
it consists of a detectable quantity of pure controlled substance and any excipients or fillers. 10
…." 11
SECTION 4.8. G.S. 105-113.107A reads as rewritten: 12
"§ 105-113.107A. Exemptions. 13
(a) Authorized Possession. – The tax levied in this Article does not apply to a substance 14
in the possession of a dealer who is authorized by law to possess the substance. This exemption 15
applies only during the time the dealer's possession of the substance is authorized by law. 16
(b) Certain Marijuana Parts. – The tax levied in this Article does not apply to the 17
following marijuana: 18
(1) Harvested mature marijuana stalks when separated from and not mixed with 19
any other parts of the marijuana plant. 20
(2) Fiber or any other product of marijuana stalks described in subdivision (1) of 21
this subsection, except resin extracted from the stalks. 22
(3) Marijuana seeds that have been sterilized and are incapable of germination. 23
(4) Roots of the marijuana plant." 24
SECTION 4.9. G.S. 105-113.108(b)(1) is repealed. 25
SECTION 4.10. G.S. 106-134(4) reads as rewritten: 26
"(4) If it is for use by man and contains any quantity of the narcotic or hypnotic 27
substance alphaeucaine, barbituric acid, betaeucaine, bromal, cannabis, 28
carbromal, chloral, coca, cocaine, codeine, heroin, marijuana, morphine, 29
opium, paraldehyde, peyote, or sulphonmethane; or any chemical derivative 30
of such substances, which derivative has been by the Board after investigation, 31
found to be, and by regulations under this Article, designated as, habit 32
forming; unless its label bears the n ame and quantity or proportion of such 33
substance or derivative and in juxtaposition therewith the statement "Warning 34
– May be habit forming."" 35
SECTION 4.11. G.S. 148-64.1(a)(2)e. is repealed. 36
SECTION 4.12. G.S. 90-94.1 is repealed. 37
SECTION 4.13. This Part becomes effective January 1, 2026, and applies to offenses 38
committed on or after that date. 39
40
PART V. SAVINGS CLAUSE, SEVERABILITY CLAUSE, AND EFFECTIVE DATE 41
SECTION 5.1. Prosecutions for offenses committed before the effective date of this 42
act are not abated or affected by this act, and the statutes that would be applicable but for this act 43
remain applicable to those prosecutions. 44
SECTION 5.2. If any provision of this a ct or its application is held invalid, the 45
invalidity does not affect other provisions or applications of this act that can be given effect 46
without the invalid provisions or application and, to this end, the provisions of this act are 47
severable. 48
SECTION 5.3. Except as otherwise provided in this act, this act is effective when it 49
becomes law. 50