North Carolina, one of the few states yet to legalize medical cannabis, may see a shift in its policy landscape with the introduction of a new bill. On March 17, State Rep. Jordan Lopez, D-Mecklenburg, filed House Bill 413, the Marijuana Legalization and Reinvestment Act, aiming to establish a regulated and taxed adult-use cannabis market in the “Old North State”.
Key Provisions of H.B. 413
The 19-page legislation proposes allowing adults aged 21 and older to possess up to two ounces of cannabis, 15 grams of concentrates or 2,000 milligrams of THC and grow up to six cannabis plants in their private residences. It would impose a 30% excise tax on sales at licensed dispensaries—the second-highest rate nationwide after Washington state’s 37%—with an additional optional 2% local tax.
Tax Revenue Allocation
Under the bill, the largest portion of tax revenue (25%) would flow into a newly created Community Reinvestment and Repair Fund, designed to improving the “well-being of individuals and communities that have experienced a disproportionate negative impact from poverty, unemployment, cannabis prohibition and enforcement, mass incarceration or systemic racism.”
Additionally, H.B. 413 establishes a Cannabis Enterprise Opportunity Fund, allocating 10% of cannabis tax revenue to provide zero-interest loans and grants to historically marginalized applicants and cannabis businesses owned or operated by such individuals.
Regulatory Framework
The North Carolina Department of Public Safety would oversee licensing for cultivation, retail, manufacturing, transportation, testing, delivery and on-site consumption establishments. An Office of Community Reinvestment within the department would be responsible for promoting and encouraging an equitable marketplace.
While local governments could ban cannabis establishments through ordinances, they would retain no authority to prohibit intrastate deliveries or transportation. The bill imposes no restrictions on consumption methods but enforces key regulations, including:
– Marijuana must be grown out of public view, including from another private property
– Marijuana could only be grown on property owned by the grower, or where permission has been granted
– It would be illegal to smoke marijuana in public places
– It would be illegal to use marijuana when driving a car or boat
–Landlords/property managers could prohibit smoking marijuana
– Various possession limits
If passed, North Carolina would become the 25th U.S. state to legalize recreational cannabis. The bill is poised to spur demand for vaping devices, portable filtration systems, and other consumption accessories. Tax-funded reinvestment programs could support local smoke shop startups, while equity-focused provisions may elevate minority-owned brands. Licensed retailers would also face accelerated compliance requirements for product sales.
The News is sourced from WBTV and Ganjapreneur.
Post time: Apr-03-2025
