Marijuana and Vapor Products Reform.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 937

Short Title: Marijuana and Vapor Products Reform. (Public)
Sponsors: Senator Burgin (Primary Sponsor).
Referred to: Rules and Operations of the Senate
April 30, 2026
*S937-v-1*
A BILL TO BE ENTITLED 1
AN ACT DECRIMINALIZI NG POSSESSION OF FIV E GRAMS OR LESS OF 2
MARIJUANA; CONFORMIN G THE STATE DEFINITI ON OF HEMP WITH THE 3
FEDERAL DEFINITION A ND PROHIBITING CERTA IN THC AND CANNABIS 4
PRODUCTS; INCREASING THE PENALTIES FOR M ANUFACTURING AND 5
SELLING MARIJUANA; R AISING THE AGE TO PU RCHASE TOBACCO, VAPO R, 6
AND CONSUMABLE PRODU CTS; INCREASING THE EXCISE TAX ON VAPOR 7
PRODUCTS; INCREASING THE UNAUTHORIZED SU BSTANCE EXCISE TAX O N 8
MARIJUANA; EXPANDING ALCOHOL LAW ENFORCE MENT'S (ALE) SUBJECT 9
MATTER JURISDICTION; MAKIN G AN APPROPRIATION F OR EVIDENCE 10
STORAGE AND DISPOSAL BY ALE; AND MAKING ADMINISTRATIVE AND 11
ENFORCEMENT CHANGES TO THE VAPOR PRODUCTS DIRECTORY. 12
The General Assembly of North Carolina enacts: 13
14
PART I. THC PRODUCTS PROHIBITED AND POSSESSION OF 5 GRAMS OR LESS 15
OF MARIJUANA DECRIMINALIZED 16
SECTION 1.1.(a) G.S. 90-94 reads as rewritten: 17
"§ 90-94. Schedule VI controlled substances. 18
(a) This schedule includes the controlled substances listed or to be listed by whatever 19
official name, common or usual name, chemical name, or trade name designated. In determining 20
that such substance comes within this schedule, the Commission shall find: no currently accepted 21
medical use in the United States, or a relatively low potential for abuse in terms of risk to public 22
health and potential to produce psychic or physiological dependence liability based upon present 23
medical knowledge, or a need for further and continuing study to develop scientific evidence of 24
its pharmacological effects. 25
(b) The following controlled substances are included in this schedule: 26
(1) Marijuana. 27
(2) Tetrahydrocannabinols, except for tetrahydrocannabinols found in a product 28
with a delta-9 tetrahydrocannabinol concentration total tetrahydrocannabinols 29
(including tetrahydrocannabi nolic acid) concentration of not more than 30
three-tenths of one percent (0.3%) on a dry weight basis. 31
(3) Repealed by Session Laws 2017 -115, s. 8, effective December 1, 2017, and 32
applicable to offenses committed on or after that date. 33
…." 34
SECTION 1.1.(b) G.S. 90-87 reads as rewritten: 35
"§ 90-87. Definitions. 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 937-First Edition
As used in this Article: 1
… 2
(3b) "Container" means the innermost wrapping, packaging, or vessel in direct 3
contact with a final hemp -derived cannabinoid product in which the final 4
hemp-derived cannabinoid product is enclosed for retail sale to consumers, 5
such as a jar, bottle, bag, box, packet, can, carton, or cartridge. 6
… 7
(13a) "Hemp" means the plant Cannabis sativa (L.) and any part of that plant, 8
including the seeds thereof and all derivatives, extracts , cannabinoids, 9
isomers, acids, salts, and salts of isomers, whether growing or not, with a 10
delta-9 tetrahydrocannabinol concentration total tetrahydrocannabinols 11
(including tetrahydrocannabinolic acid) concentration of not more than 12
three-tenths of one pe rcent (0.3%) on a dry weight basis. The term excludes 13
all of the following: 14
a. Any viable seeds from a Cannabis sativa L. plant that exceeds a total 15
tetrahydrocannabinols (including tetrahydrocannabinolic acid) 16
three-tenths of one percent (0.3%) on a dry weight basis. 17
b. Any intermediate hemp-derived cannabinoid products containing: 18
1. Cannabinoids that are not capable of being naturally produced 19
by a Cannabis sativa L. plant. 20
2. Cannabinoids that are capable of being naturally produced by 21
a Cannabis sativa L. plant and were synthesized or 22
manufactured outside of the plant. 23
3. More than three -tenths of one percent (0.3%) combined total 24
tetrahydrocannabinols concentration (including 25
tetrahydrocannabinolic acid) and any other cannabinoids that 26
have similar effects (or are marketed to have similar effects) 27
on humans or animals as a tetrahydrocannabinol, as 28
determined by the Secretary of Health and Human Services. 29
c. Any intermediate he mp-derived cannabinoid products that are 30
marketed or sold as a final product or directly to an end consumer for 31
personal or household use. 32
d. Any final hemp-derived cannabinoid products containing: 33
1. Cannabinoids that are not capable of being naturally produced 34
by a Cannabis sativa L. plant. 35
2. Cannabinoids that are capable of being naturally produced by 36
a Cannabis sativa L. plant and were synthesized or 37
manufactured outside of the plant. 38
3. More than 0.4 milligrams combined total per container of total 39
tetrahydrocannabinols (including tetrahydrocannabinolic acid) 40
and any other cannabinoids that have similar effects (or are 41
marketed to have similar effects) on humans or animals as a 42
tetrahydrocannabinol, as determined by the Secretary of Health 43
and Human Services. 44
… 45
(13c) "Intermediate hemp -derived cannabinoid product " means a hemp -derived 46
cannabinoid product that is not yet in the final form or preparation marketed 47
or intended to be used or consumed by a human or animal, or is a powder, 48
liquid, tablet, oil, or other product form which is intended or marketed to be 49
mixed, dissolved, formulated, or otherwise added to or prepared with or into 50
any other substance prior to administration or consumption. 51
General Assembly Of North Carolina Session 2025
Senate Bill 937-First Edition Page 3
… 1
(25a) "Secretary of Health and Human Services" means the Secretary of the United 2
States Department of Health and Human Services. 3
…." 4
SECTION 1.1.(c) G.S. 90-95 reads as rewritten: 5
"§ 90-95. Violations; penalties. 6
(a) Except as authorized by this Article, it is unlawful for any person:person to do any of 7
the following: 8
(1) To manufacture, sell or deliver, or possess with intent to manufacture, sell or 9
deliver, a controlled substance;substance. 10
(2) To create, sell or deliver, or possess with intent to sell or deliver, a counterfeit 11
controlled substance;substance. 12
(3) To possess a controlled substance. 13
(b) Except as provided in subsections (h) and (i) of this section, any person who violates 14
G.S. 90-95(a)(1) subdivision (1) of subsection (a) of this section with respect to: 15
… 16
(2) A controlled substance classified in Schedule III, IV, V, or VI IV, or V shall 17
be punished as a Class I felon, except that the sale of a controlled substance 18
classified in Schedule III, IV, V, or VI IV, or V shall be punished as a Class 19
H felon. The transfer of less than 5 gr ams of marijuana for no remuneration 20
shall not constitute a delivery in violation of G.S. 90-95(a)(1). 21
(3) A controlled substance classified in Schedule VI shall be punished as a Class 22
G felon and subject to a fine of no less than ten thousand dollars ($10,000). If 23
any person is found guilty of violating this subdivision, and the violation arose 24
in furtherance of a business organized under the laws of this State, then the 25
judge shall order the Secretary of State to revoke the business 's authority to 26
operate within this State. The transfer of less than 5 grams of marijuana for no 27
remuneration shall not constitute a delivery in violation of subdivision (1) of 28
subsection (a) of this section. 29
(c) Any person who violates G.S. 90-95(a)(2) subdivision (2) of subsection (a) of this 30
section shall be punished as a Class I felon. 31
(d) Except as provided in subsections (h) and (i) of this section, any person who violates 32
G.S. 90-95(a)(3) subdivision (3) of subsection (a) of this section with respect to: 33
… 34
(4) A controlled substance class ified in Schedule VI shall be guilty of a Class 3 35
misdemeanor, but any sentence of imprisonment imposed must be suspended 36
and the judge may not require at the time of sentencing that the defendant 37
serve a period of imprisonment as a special condition of probation. If shall be 38
guilty of a Class 1 misdemeanor if the quantity of the controlled substance 39
exceeds one-half of an ounce (avoirdupois) 5 grams of marijuana or 40
one-twentieth of an ounce (avoirdupois) of the extracted resin of marijuana, 41
commonly known as hashish, the violation shall be punishable as a Class 1 42
misdemeanor. hashish. If the quantity of the controlled substance exceeds one 43
and one -half ounces (avoirdupoi s) of marijuana, or three -twentieths of an 44
ounce (avoirdupois) of the extracted resin of marijuana, commonly known as 45
hashish, or if the controlled substance consists of any quantity of synthetic 46
tetrahydrocannabinols or tetrahydrocannabinols isolated from the resin of 47
marijuana, the violation shall be punishable as a Class I felony. 48
… 49
(h) Notwithstanding any other provision of law, the following provisions apply except as 50
otherwise provided in this Article: 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 937-First Edition
(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 G 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 fifteen thousand dollars 8
($5,000);($15,000). 9
b. Is 50 pounds or more, but less than 2,000 pounds, such person shall be 10
punished as a Class G felon and shall be sentenced to a minimum term 11
of 35 months and a maximum term of 51 months in the State's prison 12
and shall be fined not less than twenty -five thousa nd dollars 13
($25,000);($25,000). 14
c. Is 2,000 pounds or more, but less than 10,000 pounds, such person 15
shall be punished as a Class F felon and shall be sentenced to a 16
minimum term of 70 months and a maximum term of 93 months in the 17
State's prison and shall be fined not less than fifty thousand dollars 18
($50,000);($50,000). 19
d. Is 10,000 pounds or more, such person shall be punished as a Class D 20
felon and shall be sentenced to a minimum term of 175 months and a 21
maximum term of 222 months in the State's prison and shall be fined 22
not less than two hundred thousand dollars ($200,000). 23
(1a) For the purpose of this subsection, a "dosage unit" shall consist of 3 grams of 24
synthetic cannabinoid or any mixture containing such substance. Any person 25
who sells, manufacture s, delivers, transports, or possesses in excess of 50 26
dosage units of a synthetic cannabinoid or any mixture containing such 27
substance, shall be guilty of a felony, which felony shall be known as 28
"trafficking in synthetic cannabinoids," and if the quantity of such substance 29
involved: 30
a. Is in excess of 50 dosage units, but less than 250 dosage units, such 31
person shall be punished as a Class H G felon and shall be sentenced 32
to a minimum term of 25 months and a maximum term of 39 months 33
in the State's prison and shall be fined not less than five fifteen 34
thousand dollars ($5,000);($15,000). 35
b. Is 250 dosage units or more, but less than 1250 dosage units, such 36
person shall be punished as a Class G felon and shall be sentenced to 37
a minimum term of 35 months and a maximum term of 51 months in 38
the State's prison and shall be fined not less than twenty-five thousand 39
dollars ($25,000);($25,000). 40
c. Is 1250 dosage units or more, but less than 3750 dosage units, such 41
person shall be punished as a Class F felon and shall be sentenced to a 42
minimum term of 70 months and a maximum term of 93 months in the 43
State's prison and shall be fined not less than fifty thousand dollars 44
($50,000);($50,000). 45
d. Is 3750 dosage units or more, such person shall be punished as a Class 46
D felon and shall be sentenced to a minimum term of 175 months and 47
a maximum term of 222 months in the State's prison and shall be fined 48
not less than two hundred thousand dollars ($200,000). 49
…." 50
General Assembly Of North Carolina Session 2025
Senate Bill 937-First Edition Page 5
SECTION 1.1.(d) This Part becomes effective December 1, 2026 , and applies to 1
offenses committed on or after that date. 2
3
PART II. STRICT LIAB ILITY FOR SALES OF V APOR PRODUCTS AND 4
MARIJUANA 5
SECTION 2.1.(a) G.S. 99B-1.1 reads as rewritten: 6
"§ 99B-1.1. Strict liability. 7
(a) There Except as provided in subsections (b) and (c) of this section, there shall be no 8
strict liability in tort in product liability actions. 9
(b) The manufacturer or seller of a vapor product or consumable product, as defined in 10
G.S. 14-313, shall be strictly liable in tort in a product liability action. 11
(c) The manufacturer or seller of marijuana , as defined in G.S. 90-87, shall be strictly 12
liable in tort in a product liability action." 13
SECTION 2.1.(b) G.S. 99B-2 reads as rewritten: 14
"§ 99B-2. Seller's opportunity to inspect; privity requirements for warranty claims. 15
(a) No product liability action, except an action for breach of express warranty, warranty 16
or a product liability action pursuant to G.S. 99B-1.1(b) or (c), shall be commenced or maintained 17
against any seller when the product was acqu ired and sold by the seller in a sealed container or 18
when the product was acquired and sold by the seller under circumstances in which the seller 19
was afforded no reasonable opportunity to inspect the product in such a manner that would have 20
or should have, in the exercise of reasonable care, revealed the existence of the condition 21
complained of, unless the seller damaged or mishandled the product while in his possession; 22
provided, that the provisions of this section shall not apply if the manufacturer of th e product is 23
not subject to the jurisdiction of the courts of this State or if such manufacturer has been judicially 24
declared insolvent. 25
…." 26
SECTION 2.1.(c) This Part becomes effective October 1, 2026, and applies to causes 27
of action arising on or after that date. 28
29
PART III. YOUTH ACCESS TO TOBACCO PRODUCTS AND VAPOR PRODUCTS 30
SECTION 3.1.(a) G.S. 14-313 reads as rewritten: 31
"§ 14-313. Youth access to tobacco products, alternative nicotine products, vapor products, 32
and cigarette wrapping papers. 33
(a) Definitions. – The following definitions apply in this section: 34
… 35
(1a) Consumable product. – Consumable product shall have the same meaning as 36
provided in G.S. 105-113.4(1k). For purposes of this section, a consumable 37
product does not contain any tobacco leaf. 38
… 39
(3c) Smart vapor products. – Vapor products that have designs and functionalities 40
that resemble smart technology, including phones and gaming devices. 41
(3d) Timely Filed Premarket Tobacco Product Application. – An application 42
pursuant to 21 U.S.C. § 387j for a vapor product or consumable product 43
containing nicotine derived from tobacco marketed in the United States as of 44
August 8, 2016, that was submitted to the United States Food and Drug 45
Administration on or before September 9, 2020, and accepted for filing. 46
(4) Tobacco product. – Any product that contains tobacco and is intended for 47
human consumption. For purposes of this section, the term includes an 48
alternative nicotine product, vapor product, consumable product, or 49
components of a vapor product. 50
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 937-First Edition
(5) Vapor product. – Any noncombustible product that employs a mechanical 1
heating element, battery, or electronic circuit regardless of shape or size and 2
that can be used to heat a consumable product. The term includes an electronic 3
cigarette, electronic cigar, electronic cigarillo, and electronic pipe. The term 4
also includes smart vapor pr oducts. The term does not include any product 5
regulated by the United States Food and Drug Administration under Chapter 6
V of the federal Food, Drug, and Cosmetic Act. 7
(b) Sale or Distribution to Persons Under the Age of 18 21 Years. – If any person shall 8
distribute, It shall be unlawful for any person to do any of the following: 9
(1) Distribute, or aid, assist, or abet any other person in distributing tobacco 10
products or ci garette wrapping papers to any person under the age of 18 21 11
years, or if for any person shall to purchase tobacco products or cigarette 12
wrapping papers on behalf of a person under the age of 18 years, the person 13
shall be guilty of a Class 2 misdemeanor; provided, however, that it 21 years. 14
Any person who violates this subdivision shall be guilty of a Class 2 15
misdemeanor. It shall not be unlawful to distribute tobacco products or 16
cigarette wrapping papers to an employee when required in the performance 17
of the employee's duties. 18
(2) Distribute, or aid, assist, or abet any other person in distributing vapor 19
products or consumable products, as those terms are defined in 20
G.S. 105-113.4, to any person under the age of 21 years, or for any person to 21
purchase vapor products or consumable products on behalf of a person under 22
the age of 21 years. Any person who violates this subdivision shall be guilty 23
of a Class G felony. It shall not be unlawful to distribute vapor products or 24
consumable products to an employee when required in the performance of the 25
employee's duties. 26
(b1) Retail distributors of tobacco products products, vapor products, and consumable 27
products shall prominently display near the point of sale a sign in letters at least five -eighths of 28
an inch high which states the following: 29
N.C. LAW STRICTLY PROHIBITS 30
THE PURCHASE OF TOBACCO PRODUCTS, ALTERNATIVE NICOTINE PRODUCTS, 31
VAPOR PRODUCTS, CONSUMABLE PRODUCTS, AND CIGARETTE WRAPPING 32
PAPERS 33
BY PERSONS UNDER THE AGE OF 18.21. 34
PROOF OF AGE REQUIRED. 35
Failure to post the required sign shall be an infraction punishable by a fine of twenty-five dollars 36
($25.00) for the first offense and seventy-five dollars ($75.00) for each succeeding offense. 37
A person engaged in the sale of tobacco products or products, cigarette wrapping papers 38
papers, vapor products, or consumable products shall demand proof of age from a prospective 39
purchaser if the person has reasonable grounds to believe that the prospective purchaser is under 40
18 21 years of age. Failure to demand proof of age as required by this subsection is a Class 2 41
misdemeanor if in fact the prospective purchaser is under 18 21 years of age. Retail distributors 42
of tobacco products or products, cigarette wrapping papers papers, vapor products, or 43
consumable products, shall train their sales employees in the requirements of this law. Proof of 44
any of the following shall be a defense to any action brought under this subsection: 45
(1) The defendant demanded, was shown, and reasonably relied upon proof of age 46
in the case of a retailer, or any other documentary or written evidence of age 47
in the case of a nonretailer. 48
(2) The defendant relied on the electronic system established and operated by the 49
Division of Motor Vehicles pursuant to G.S. 20-37.02. 50
General Assembly Of North Carolina Session 2025
Senate Bill 937-First Edition Page 7
(3) The defendant relied on a biometric identification system that demonstrated 1
(i) the purchaser's age to be at least the required age for the purchase and (ii) 2
the purchaser had previously registered with the seller or seller's agent a 3
drivers license, a special identification card issued under G.S. 20-37.7, a 4
military identification card, or a passport showing the purchaser's date of birth 5
and bearing a physical description of the person named on the card. 6
(b1)(b2) Distribution of Tobacco Products, Vapor Products, and Consumable Products. – 7
Tobacco products products, vapor products, and consumable products shall not be distributed in 8
vending machines; provided, however, vending machines distributing tobacco those products are 9
permitted (i) in any establishment which is open only to persons 18 21 years of age and older; or 10
(ii) in any establishment if the vending machine is under the continuous control of the owner or 11
licensee of the premises or an employee thereof and can be operated only upon activation by the 12
owner, licensee, or employee prior to each purchase and the vending machine is not accessible 13
to the public when the establishment is closed. The owner, licensee, or employee shall demand 14
proof of age from a prospective purchaser if the person has reasonable grounds to believe that 15
the prospective purchaser is under 18 21 years of age. Failure to demand proof of age as required 16
by this subsection is a Class 2 misdemeanor if in fact the prospective purchaser is under 18 21 17
years of age. Proof that the defendant demanded, was shown, and reasonably relied upon proof 18
of age shall be a defense to any action brought under this subsection. Any person distributing 19
tobacco products products, vapor products, or consumable products through vending machines 20
in violation of this subsection shall be guilty of a Class 2 misdemeanor. 21
(b2)(b3) Internet Distribution of Tobacco Products, Vapor Products, and Consumable 22
Products. – A person engaged in the distribution of to bacco products, vapor products, or 23
consumable products through the internet or other remote sales methods shall perform an age 24
verification through an independent, third -party age verification service that compares 25
information available from public records to the personal information entered by the individual 26
during the ordering process to establish that the individual ordering the tobacco products is 18 27
21 years of age or older. 28
(c) Purchase By Persons Under the Age of 18 21 Years. – If any person under the age of 29
18 21 years purchases or accepts receipt, or attempts to purchase or accept receipt, of tobacco 30
products products, vapor products, consumable pro ducts, or cigarette wrapping papers, or 31
presents or offers to any perso n any purported proof of age which is false, fraudulent, or not 32
actually his or her own, for the purpose of purchasing or receiving any tobacco product product, 33
vapor product, consumable product, or cigarette wrapping papers, the person shall be guilty of a 34
Class 2 misdemeanor; provided, however, that it shall not be unlawful for an employee to 35
purchase or accept receipt of tobacco products products, vapor products, consumable products, 36
or cigarette wrapping papers when required in the performance of the employee's duties. 37
(d) Sending or Assisting a Person [Less Than] 18 21 Years to Purchase or Receive 38
Tobacco Products Products, Vapor Products, Consumable Products, or Cigarette Wrapping 39
Papers. – If any person shall send a person less than 18 21 years of a ge to purchase, acquire, 40
receive, or attempt to purchase, acquire, or receive tobacco products products, vapor produ cts, 41
consumable products, or cigarette wrapping papers, or if any person shall aid or abet a person 42
who is less than 18 21 years of age in p urchasing, acquiring, or receiving or attempting to 43
purchase, acquire, or receive tobacco products products, vapor products, consumable products, 44
or cigarette wrapping papers, the person shall be guilty of a Class 2 misdemeanor; provided, 45
however, persons under the age of 18 21 may be enlisted by police or local sheriffs' departments 46
to test compliance if the testing is under the direct supervision of that law enforcement 47
department and written parental consent is provided; provided further, that the Department of 48
Health and Human Services shall have the authority, pursuant to a written plan prepared by the 49
Secretary of Health and Human Services, to use persons under 18 21 years of age in annual, 50
random, unannounced inspections, provided that prior written parental consent is given for the 51
General Assembly Of North Carolina Session 2025
Page 8 Senate Bill 937-First Edition
involvement of these persons and that the inspections are conducted for the sole purpose of 1
preparing a scientifically and methodologically valid statistical study of the extent of success the 2
State has achieved in reducing the availability of tobacco products, vapor products, and 3
consumable products to persons under the age of 18, 21, and preparing any report to the extent 4
required by section 1926 of the federal Public Health Service Act (42 USC § 300x-26). 5
(e) Statewide Uniformity. – It is the intent of the General Assembly to prescribe this 6
uniform system for the regulation of tobacco products products, vapor produ cts, consumable 7
products, and cigarette wrapping papers to ensure the eligibility for and receipt of any federal 8
funds or grants that the State now receives or may receive relating to the provisions of this 9
section. To ensure uniformity, no political subdivisions, boards, or agencies of the State nor any 10
county, city, municipality, municipal corporation, town, township, village, nor any department 11
or agency thereof, may enact ordinances, rules or regulations concerning the sale, distribution, 12
display or promotion of (i) tobacco products or cigarette wrapping papers on or after September 13
1, 1995, (ii) alternative nicotine products or vapor products on or after August 1, 2013, or (iii) 14
alternative nicotine products on or after December 1, 2024. This subsection does not apply to the 15
regulation of vending machines, nor does it prohibit the Secretary of Revenue from adopting 16
rules with respect to the administration of the tobacco products taxes levied under Article 2A of 17
Chapter 105 of the General Statutes. 18
(f) Deferred Prosecution or Conditional Discharge. – Notwithstanding 19
G.S. 15A-1341(a1) or G.S. 15A-1341(a4), any person charged with a misdemeanor under this 20
section shall be qualified for deferred prosecution or a conditional discharge pursuant to Article 21
82 of Chapter 15A of the General Statutes provided the defendant has not previously been placed 22
on probation for a violation of this section and so states under oath. 23
…." 24
SECTION 3.1.(b) This Part becomes effective December 1, 2026, and applies to 25
offenses committed on or after that date. 26
27
PART IV. TAX LAW CON FORMING CHANGES, INC REASE EXCISE TAX ON 28
VAPOR PRODUCTS, AND INCREASE EXCISE TAX ON MARIJUANA 29
SECTION 4.1.(a) G.S. 105-113.4 reads as rewritten: 30
"§ 105-113.4. Definitions. 31
The following definitions apply in this Article: 32
… 33
(10b) Smart vapor products. – Vapor products that have designs and functionalities 34
that resemble smart technology, including phones and gaming devices. 35
(10c) Smokeless tobacco. – Any finely cut, ground, powdered, or leaf tobacco, or 36
other product containing tobacco, that is intended to be placed in the oral or 37
nasal cavity or otherwise consumed without being combusted. 38
… 39
(13a) Vapor product. – Any nonlighted, noncombustible product that employs a 40
mechanical heating element, battery, or electronic circuit regardless of shape 41
or size and that can be used to produce vapor from nicotine, however derived, 42
in a solution. The term includes any vapor cartridge or other container of 43
nicotine in a solution or other form that is intended to be u sed with or in an 44
electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or 45
similar product or device. The term also includes smart vap or products. The 46
term does not include any product regulated by the United States Food and 47
Drug Administration under Chapter V of the federal Food, Drug, and 48
Cosmetic Act. 49
…." 50
SECTION 4.1.(b) G.S. 105-113.4F reads as rewritten: 51
General Assembly Of North Carolina Session 2025
Senate Bill 937-First Edition Page 9
"§ 105-113.4F. Delivery sales of certain tobacco products; age verification. 1
(a) Scope. – This section applies to delivery sales. For purposes of this section, the term 2
"tobacco product" means cigarettes, smokeless tobacco, or vapor products. 3
(b) Delivery Seller Requirements. – A delivery seller must do all of the following with 4
respect to a delivery sale: 5
(1) Obtain a licens e from the Secretary as required by this Article before 6
accepting an order. 7
(2) Comply with the age verification requirements in 8
G.S. 14-313(b2).G.S. 14-313(b3). 9
…." 10
SECTION 4.1.(c) G.S. 105-113.36A reads as rewritten: 11
"§ 105-113.36A. Tax rates; liability for tax. 12
(a) Tax Imposed. – An excise tax is levied on the sale, use, consumption, handling, or 13
distribution of tobacco products at the following rates: 14
(1) On vapor products, the rate of five ten cents (5¢) (10¢) per fluid milliliter of 15
consumable product. All invoices for vapor products issued by manufacturers 16
must state the amount of consumable product in milliliters. 17
… 18
(g) Use of Tax Proceeds. – The Secretary must credit the net proceeds of the tax collected 19
under subdivision (1) of subsection (a) of this section as follows: 20
(1) An amount equal to fifty percent (50%) to the Division of Social Services of 21
the Department of Health and Human Services to be used in foster care 22
programs. 23
(2) An amount equal to fifty percent (50%) to the Division of Public Health of the 24
Department of Health and Human Services to provide public education 25
throughout the State on the health risks associated with vapor products." 26
SECTION 4.1.(d) G.S. 105-113.107 reads as rewritten: 27
"§ 105-113.107. Excise tax on unauthorized substances. 28
(a) Controlled Substances. – An excise tax is levied on controlled substances possessed, 29
either actually or constructively, by dealers at the following rates: 30
(1) At the rate of forty cents (40¢) one dollar and fifty cents ($1.50) for each gram, 31
or fraction thereof, of harvested marijuana stems and stalks that have been 32
separated from and are not mixed with any other parts of the marijuana plant. 33
(1a) At the rate of three dollars and fifty cents ($3.50) thirteen dollars and thirteen 34
cents ($13.13) for each gram, or fraction thereof, of marijuana, other than 35
separated stems and stalks taxed under subdivision (1) of this [sub]section, or 36
synthetic cannabinoids. 37
…." 38
SECTION 4.1.(e) This Part becomes effective for taxable years beginning on or after 39
January 1, 2027. 40
41
PART V. ALCOHOL LAW ENFORCEMENT SUBJECT MATTER JURISDICTION 42
AND APPROPRIATIONS 43
SECTION 5.1.(a) G.S. 18B-500 reads as rewritten: 44
"§ 18B-500. Alcohol law-enforcement agents. 45
… 46
(b) Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an 47
alcohol law-enforcement agent shall have authority to arrest and take other investigatory and 48
enforcement actions for any criminal offense: 49
(1) Occurring, encountered, or otherwise discovered on the premises of, or 50
elsewhere when the conduct relates to, a location under application for or 51
General Assembly Of North Carolina Session 2025
Page 10 Senate Bill 937-First Edition
holding a permit issued by the North Carolina Alcoholic Beverage Control 1
Commission or the North Carolina Education Lottery Commission. 2
(2) Encountered or otherwise discovered while investigating or enforcing matters 3
for the North Carolina Alcoholic Beverage Control Commission or the North 4
Carolina Education Lottery Commission or encountered or otherwise 5
discovered while investigating or enforcing the provisions of this Chapter, 6
Chapter 18C of the General Statutes, G.S. 14-313, Article 5 of Chapter 90 of 7
the General Statutes , Part 3 of Article 4 of Chapter 143B of the General 8
Statutes, or Parts 1 and 2 of Article 37 of Chapter 14 of the General Statutes. 9
(3) Encountered or otherwise discovered while carrying out any duty or function 10
assigned to the Division by law. 11
(4) Occurring in an agent's presence. 12
(5) When assisting another law enforcement agency. 13
…." 14
SECTION 5.1.(b) There is appropriated from the General Fund to the Alcohol Law 15
Enforcement Division of the Department of Public Safety the sum of seven hundred fifty 16
thousand dollars ($750,000) in recurring funds for the 2026 -2027 fiscal year for the purpose of 17
evidence storage and disposal. 18
SECTION 5.1.(c) There is appropriated from the General Fund to the Alcohol Law 19
Enforcement Division of the Department of Public Safety the sum of two million five hundred 20
thousand dollars ($2,500,000) in recurring funds for the 2026-2027 fiscal year for the purpose of 21
hiring up to 37 full-time employees. 22
SECTION 5.1.(d) Subsections (b) and (c) of this section become effective July 1, 23
2026. The remainder of this section is effective when it becomes law. 24
25
PART VI. ADMINISTRATIVE CHANGES TO THE VAPOR PRODUCTS DIRECTORY 26
SECTION 6.1.(a) If Senate Bill 595 of the 2026 Regular Session of the 2025 General 27
Assembly becomes law, then G.S. 143B-245.10, as amended by Part IX of Senate Bill 595 of the 28
2026 Regular Session of the 2025 General Assembly, reads as rewritten: 29
"§ 143B-245.10. Definitions. 30
The following definitions apply throughout this Part: 31
(1) ALE Division. – As defined in G.S. 18B-101. 32
(1a) Alternative nicotine product. – As defined in G.S. 14-313(a)(1). 33
(2) Consumable product. – As defined in G.S. 14-313(a)(1a). 34
(3) Distribute. – As defined in G.S. 14-313(a)(1b). 35
(4) FDA. – As defined in G.S. 14-313(a)(1c). 36
(5) Secretary. – The Secretary of the Department of Revenue. 37
(6) Timely Filed Premarket Tobacco Product Application. – As def ined in 38
G.S. 14-313(a)(3c).G.S. 14-313(a)(3d). 39
(7) Tobacco product. – As defined in G.S. 14-313(a)(4). 40
(8) Vapor product. – As defined in G.S. 14-313(a)(5)." 41
SECTION 6.1.(b) If Senate Bill 595 of the 2026 Regular Session of the 2025 General 42
Assembly becomes law, then G.S. 143B-245.15, as amended by Part IX of Senate Bill 595 of the 43
2026 Regular Session of the 2025 General Assembly, reads as rewritten: 44
"§ 143B-245.15. Compliance. 45
(a) Unannounced Compliance Check. Inspection. – Each retailer, distributor, and 46
wholesaler that sells or distributes consumable products or vapor products in this State shall be 47
subject to unannounced compliance checks investigation and unannounced inspection by the 48
ALE Division for purposes the purpo ses of enforcing this Part. Unannounced follow -up 49
compliance checks of all noncompliant retailers, distributors, and wholesalers shall be conducted 50
General Assembly Of North Carolina Session 2025
Senate Bill 937-First Edition Page 11
within 30 days after any violation of this Part. The following provisions apply with respect to 1
this section: 2
(1) Any person who observes a violation described in G.S. 143B-245.13 may alert 3
the ALE Division of the violation, and the ALE Division shall cause an 4
unannounced compliance check to occur with respect to the person alleged to 5
be in violation.may investigate the alleged violation and, if necessary, conduct 6
an unannounced inspection. 7
(2) The ALE Division shall publish the results of all compliance checks at least 8
annually maintain records of all inspections and shall make the results 9
available to the public on request. 10
(3) The ALE Division shall report to the Secretary any violation of this Chapter 11
for which civil penalties are authorized and regardless of whether criminal 12
charges have been filed. 13
(4) Any products identified for sale that are not on the registry in compliance with 14
the provisions of this Chapter may be subject to seizure, forfeiture, and 15
destruction in accordance with G.S. 14-313(h)(1)c. 16
…." 17
SECTION 6.1.(c) This Part is effective when it becomes law. 18
19
PART VII. EFFECTIVE DATE 20
SECTION 7.1. Except as otherwise provided, this act is effective when it becomes 21
law. 22