H.B. 929
GENERAL ASSEMBLY OF NORTH CAROLINA
May 11, 2021
SESSION 2021 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40568-MGxfa-134
Short Title: North Carolina Medical Cannabis Act. (Public)
Sponsors: Representative Alexander.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT LEGALIZING THE MEDICAL USE OF CANNABIS; DIRECTING THE
3 DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES TO ADOPT RULES
4 ESTABLISHING A LICENSING PROCESS FOR THE CULTIVATION OF MEDICAL
5 CANNABIS AND THE MANUFACTURING OF MEDICAL CANNABIS PRODUCTS;
6 DIRECTING THE NORTH CAROLINA ALCOHOLIC BEVERAGE CONTROL
7 COMMISSION TO ADOPT RULES FOR THE ESTABLISHMENT, LICENSING, AND
8 OPERATION OF MEDICAL CANNABIS DISPENSARIES; ESTABLISHING AND
9 APPROPRIATING FUNDS FOR A SOCIAL EQUITY REINVESTMENT GRANT
10 PROGRAM TO ENCOURAGE PARTICIPATION IN THE MEDICAL CANNABIS
11 INDUSTRY BY INDIVIDUALS HIT HARDEST BY THE WAR ON CANNABIS;
12 EXPUNGING MISDEMEANOR AND FELONY MARIJUANA OFFENSES;
13 SPECIFYING UNLAWFUL CONDUCT INVOLVING THE MEDICAL USE OF
14 CANNABIS; TAXING MEDICAL MARIJUANA; AND ESTABLISHING A
15 UNIVERSITY CANNABIS EQUITY INVESTMENT FUND.
16 The General Assembly of North Carolina enacts:
17
18 PART I. LEGALIZATION OF THE MEDICAL USE OF CANNABIS
19 SECTION 1.1. Chapter 90 of the General Statutes is amended by adding a new
20 Article to read:
21 "Article 43.
22 "Medical Cannabis.
23 "§ 90-730. Definitions.
24 The following definitions apply in this Article:
25 (1) "Adequate supply" has the following meanings:
26 a. An amount of usable cannabis derived solely from an intrastate source
27 that is possessed by a qualified patient, or collectively possessed by a
28 qualified patient and the qualified patient's designated caregiver, in an
29 amount that does not exceed what is reasonably necessary to assure
30 the uninterrupted availability of cannabis for a period of three months,
31 in any form recommended by the qualified patient's physician for the
32 purpose of alleviating the symptoms or effects of the qualified patient's
33 debilitating medical condition.
34 b. For a qualified patient for whom a delivery method of inhalation of
35 cannabis vapor or smoking is recommended by the qualified patient's
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1 physician, "adequate supply" means not more than 24 ounces of
2 cannabis in a form usable for that purpose.
3 (2) "Bona fide health care provider-patient relationship" means a physician,
4 physician assistant, or nurse practitioner and a patient have a treatment or
5 counseling relationship in which the physician, physician assistant, or nurse
6 practitioner has completed a full assessment of the patient's medical history
7 and current medical condition, including an appropriate physical examination,
8 and the physician, physician assistant, or nurse practitioner is available or
9 offers to provide follow-up care and treatment to the patient, including patient
10 examinations, to determine the efficacy of the use of medical cannabis as a
11 treatment for the patient's medical condition.
12 (3) "Cannabis" means marijuana as defined in G.S. 90-87(16).
13 (4) "Health care provider" means a physician, physician assistant, or nurse
14 practitioner licensed under Article 1 of Chapter 90 of the General Statutes,
15 who is in good standing to practice medicine in this State and authorized to
16 prescribe controlled substances in this State.
17 (5) "Medical use of cannabis" or "medical use" means the acquisition, possession,
18 use, internal possession, delivery, transfer, or transportation of cannabis or
19 paraphernalia relating to the administration of cannabis to treat or alleviate a
20 qualified patient's medical condition or symptoms associated with the medical
21 condition or its treatment.
22 (6) "Qualified patient" means a person who has been diagnosed by a physician as
23 having a debilitating medical condition.
24 (7) "Written certification" means a statement in a patient's medical records or a
25 statement signed by a health care provider with whom the patient has a bona
26 fide health care provider-patient relationship indicating that, in the health care
27 provider's professional opinion, the patient has a medical condition that may
28 benefit from the medical use of cannabis and the potential health benefits of
29 the medical use of cannabis would likely outweigh the health risks for the
30 patient.
31 "§ 90-730.1. Health care provider and patient protections for the medical use of cannabis.
32 (a) A qualified patient shall not be subject to arrest, prosecution, or penalty in any
33 manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary
34 action by a business or occupational or professional licensing board or bureau, for the possession
35 or purchase of cannabis for medical use by the qualified patient if all of the following conditions
36 are met:
37 (1) The quantity of usable cannabis possessed or purchased does not exceed an
38 adequate supply, as determined by the qualified patient's physician.
39 (2) The qualified patient is in possession of a written certification from a
40 physician.
41 (b) A qualified patient is presumed to be engaged in the medical use of cannabis if the
42 qualified patient or designated caregiver is in possession of a written certification and an amount
43 of cannabis that does not exceed the qualified patient's adequate supply. This presumption may
44 be rebutted only by evidence that the qualified patient engaged in conduct related to cannabis for
45 a purpose other than alleviating the qualified patient's medical condition or symptoms associated
46 with the medical condition.
47 (c) For the purposes of medical care, including organ transplants, a qualified patient's
48 authorized use of cannabis in accordance with this Article shall be treated in the same manner as
49 the authorized use of any other medication used at the direction of a physician and shall not
50 constitute the use of an illegal substance.
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1 (d) A health care provider shall not be subject to arrest, prosecution, or penalty in any
2 manner, or denied any right or privilege, or subject to increased monitoring or disciplinary action
3 by the North Carolina Medical Board or any other business or occupational or professional
4 licensing board or bureau for either of the following:
5 (1) Advising a patient about the risks and benefits of the medical use of cannabis
6 or that the patient may benefit from the medical use of cannabis if, in the
7 physician's medical judgment, the potential benefits of the medical use of
8 cannabis would likely outweigh the health risks for that particular patient.
9 (2) Providing a patient with written certification, based upon the physician's
10 assessment of the patient's medical history and current medical condition, that
11 the potential benefits of the medical use of cannabis would likely outweigh
12 the health risks for that particular patient.
13 (e) A health care provider shall not be subject to arrest, prosecution, or penalty in any
14 manner, or denied any right or privilege, or subject to disciplinary action by a business or
15 occupational or professional licensing board or bureau for discussing with a patient the benefits
16 or health risks of the medical use of cannabis or the interaction of cannabis with other substances.
17 "§ 90-730.2. Licensing of medical cannabis cultivation and manufacturing.
18 (a) The Department of Agriculture and Consumer Services shall adopt rules for the
19 licensing of persons for the cultivation of medical cannabis and the manufacturing of medical
20 cannabis products. The rules adopted by the Department shall include, at a minimum, the
21 following:
22 (1) Application and annual renewal fees sufficient to completely cover all of the
23 Department's costs for oversight and management of the cultivation of
24 medical cannabis and the production of products containing medical cannabis,
25 as well as the grant program established by G.S. 90-730.4.
26 (2) Regulation of packaging and labeling of medical cannabis and medical
27 cannabis products.
28 (3) The requirement that medical cannabis products not include nicotine or
29 alcohol and not be in a form or flavor intended to attract unauthorized use for
30 nonmedical purposes or by children.
31 (4) Regulation of outdoor cultivation of medical cannabis to minimize diversion
32 or theft of medical cannabis for unauthorized uses.
33 (5) Sanitation and testing of medical cannabis processing and manufacturing of
34 medical cannabis products.
35 (6) Guidelines and restrictions on advertising of medical cannabis and medical
36 cannabis products.
37 (b) The Department shall complete all rule adoption and submit a report to the General
38 Assembly no later than January 31, 2023, regarding the licensing system required by this section.
39 "§ 90-730.3. Licensing and regulation of medical cannabis dispensaries.
40 (a) For purposes of this section, the terms "Commission" and "local board" are as defined
41 in G.S. 18B-101.
42 (b) By no later than January 1, 2023, the Commission shall adopt rules for the
43 establishment, licensing, and operation of medical cannabis dispensaries. The rules required
44 under this subsection shall include rules for the establishment and collection of fees for all
45 licenses required under this section, including fees associated with applications for such licenses.
46 (c) In addition to independent dispensaries licensed under subsection (b) of this section,
47 and upon the payment of any fees required under subsection (b) of this section, a local board may
48 establish and operate one medical cannabis dispensary for each ABC store operated by the local
49 board. A local board may enter into a joint venture with an eligible social equity recipient, as
50 defined in G.S. 90-730.4, for the establishment and operation of a medical cannabis dispensary.
51 Each medical cannabis dispensary established and operated under this subsection shall be located
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1 no less than 1,000 feet away from an ABC store, an independent dispensary licensed under
2 subsection (b) of this section, an elementary or secondary school, or a religious institution.
3 "§ 90-730.4. Social Equity Business Development Grant program.
4 (a) For purposes of this section, the term "eligible social equity recipient" means an
5 applicant for a license under G.S. 90-730.2 for which at least sixty-six percent (66%) of
6 ownership interest in the applicant has any of the following characteristics:
7 (1) A prior conviction for simple possession of cannabis.
8 (2) A family member with a conviction for simple possession of cannabis. For
9 purposes of this subdivision, family member means a spouse, parent,
10 stepparent, sibling, step-sibling, child, or stepchild.
11 (3) Residence in an area that is economically distressed, as determined by the
12 Department in consultation with the Department of Commerce, or with a
13 disproportionate number of arrests for cannabis violations, as determined by
14 the Department in consultation with the Department of Public Safety.
15 (4) A degree from a public or private historically black college or university.
16 (b) The Department shall establish the Social Equity Business Development Grant
17 Program (Grant Program) to provide grants and low interest loans to an eligible social equity
18 recipient. Two hundred fifty thousand dollars ($250,000) of the licensing fees collected by the
19 Department under G.S. 90-730.2 in each fiscal year shall be used by the Department to fund the
20 Grant Program. Eligible uses of the grant funds by shall include the following:
21 (1) Elimination or amelioration of barriers to licensing under this Article.
22 (2) Technical assistance.
23 (3) Outreach and promotion of medical cannabis cultivation.
24 (c) The Department shall annually report to the chairs of the Joint Legislative Oversight
25 Committee on Agriculture and Natural and Economic Resources and the Fiscal Research
26 program on the Grant Program. The report shall include grant recipients, amount distributed to
27 each recipient, and a description of activities funded by each grant."
28
29 PART II. EXPUNCTION OF MISDEMEANOR AND FELONY MARIJUANA
30 OFFENSES
31 SECTION 2.1.(a) Article 5 of Chapter 15A of the General Statutes is amended by
32 adding two new sections to read:
33 "§ 15A-145.8B. Automatic expunction of misdemeanor marijuana offenses.
34 (a) If a person was charged with (i) a misdemeanor violation of G.S. 90-95(a)(3) for
35 possession of marijuana or hashish or (ii) a violation of G.S. 90-113.22A, and the person was
36 convicted, the conviction shall be ordered to be automatically expunged no later than December
37 31, 2024, in the manner set forth in this section.
38 (b) The clerk of each superior court shall determine which cases meet the criteria for
39 expunction set forth in subsection (a) of this section. Upon completing the review required under
40 this subsection, the clerk of each superior court shall prepare an order of expungement for each
41 case that meets the criteria set forth in subsection (a) of this section and was finalized in his or
42 her court. Upon completion of the order of expungement, the court shall order the expunction.
43 Upon order of expungement, the clerk shall forward the petition to the Administrative Office of
44 the Courts.
45 (c) No person as to whom such an order has been entered under this section shall be held
46 thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise
47 giving a false statement or response to any inquiry made for any purpose, by reason of the
48 person's failure to recite or acknowledge any expunged entries concerning apprehension, charge,
49 or trial.
50 (d) The court shall also order that the conviction ordered expunged under this section be
51 expunged from the records of the court and direct all law enforcement agencies bearing record
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1 of the same to expunge their records of the conviction. The clerk shall notify State and local
2 agencies of the court's order as provided in G.S. 15A-150.
3 (e) Any other applicable State or local government agency shall expunge from its records
4 entries made as a result of the conviction ordered expunged under this section. The agency shall
5 also reverse any administrative actions taken against a person whose record is expunged under
6 this section as a result of the charges or convictions expunged. This subsection shall not apply to
7 the Department of Justice for DNA records and samples stored in the State DNA Database and
8 the State DNA Databank.
9 (f) Except as otherwise provided by law, it is unlawful for any person having or acquiring
10 access to a record expunged under this section to disclose to another person any expunged
11 information from it without an order from the court that ordered the record expunged. A person
12 who violates this subsection is guilty of a Class 1 misdemeanor.
13 (g) An employer or educational institution shall not, in any application, interview, or
14 otherwise, require an ap