Terms and Conditions

 At Marijuana Moment, one of our main priorities is the privacy of our visitors. This Privacy Policy document contains types of information that is collected and recorded by http://www.carolinammj.com and how we use it.  If you have additional questions or require more information about our Privacy Policy, do not hesitate to contact us through email at http://www.carolinammj.com  Log Files  http://www.carolinammj.com http://www.carolinammj.com follows a standard procedure of using log files. These files log visitors when they visit websites. All hosting companies do this and a part of hosting services’ analytics. The information collected by log files include internet protocol (IP) addresses, browser type, Internet Service Provider (ISP), date and time stamp, referring/exit pages, and possibly the number of clicks. These are not linked to any information that is personally identifiable. The purpose of the information is for analyzing trends, administering the site, tracking users’ movement on the website, and gathering demographic information.  Our Advertising Partners  Some of advertisers on our site may use cookies and web beacons.  Each of our advertising partners has their own Privacy Policy for their website.  Privacy Policies  Third-party ad servers or ad networks uses technologies like cookies, JavaScript, or Web Beacons that are used in their respective advertisements and links that appear on http://www.carolinammj.com  which are sent directly to users’ browser. They automatically receive your IP address when this occurs. These technologies are used to measure the effectiveness of their advertising campaigns and/or to personalize the advertising content that you see on websites that you visit.  Note that http://www.carolinammj.com has no access to or control over these cookies that are used by third-party advertisers.  Third Party Privacy Policies  http://www.carolinammj.com 's Privacy Policy does not apply to other advertisers or websites. Thus, we are advising you to consult the respective Privacy Policies of these third-party ad servers for more detailed information. It may include their practices and instructions about how to opt-out of certain options.  You can choose to disable cookies through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers’ respective websites.  Children’s Information  Another part of our priority is adding protection for children while using the internet. We encourage parents and guardians to observe, participate in, and/or monitor and guide their online activity.  http://www.carolinammj.com does not knowingly collect any Personal Identifiable Information from children under the age of 13. If you think that your child provided this kind of information on our website, we strongly encourage you to contact us immediately and we will do our best to promptly remove such information from our records.  Online Privacy Policy Only  This privacy policy applies only to our online activities and is valid for visitors to our website with regards to the information that they share and/or collect at http://www.carolinammj.com  This policy is not applicable to any information collected offline or via channels other than this website.  Consent  By using our website, you hereby consent to our Privacy Policy and agree to its Terms and Conditions.

ADMINISTRATIVE CODE, ADMINISTRATIVE RULES, AGRICULTURE, AGRICULTURE DEPT., ALTERNATIVE MEDICINE, APPROPRIATIONS, BUDGETING, COMMERCE, COMMITTEES, CONTROLLED SUBSTANCES, CRIMES, CRIMINAL RECORDS, DWI, FUNDING, FUNDS & ACCOUNTS, GRANTS, HEALTH SERVICES, LICENSES & PERMITS, LOCAL GOVERNMENT, MANUFACTURING, MOTOR VEHICLES, OCCUPATIONS, PHARMACEUTICALS, PHYSICIANS, PUBLIC, REPORTING, RETAILING, TAXATION, TAXES, EXCISE, TAXES, SALES & USE, RECORDS, LIABILITY, SMUGGLING & TRAFFICKING, TRAFFIC OFFENSES, TAX DISTRIBUTION, CASH CROPS, MARIJUANA, PATIENT RIGHTS

The Bill:

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2021 H1 HOUSE BILL 929 Short Title: Sponsors: Referred to: 1 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: North Carolina Medical Cannabis Act. (Public) Representatives Alexander, Harrison, Cunningham, and Carney (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site. Rules, Calendar, and Operations of the House May 12, 2021       A BILL TO BE ENTITLED     25 (1) 26 27 28 29 30 31 32 33 "Adequate supply" has the following meanings:  a. An amount of usable cannabis derived solely from an intrastate source that is possessed by a qualified patient, or collectively possessed by a qualified patient and the qualified patient's designated caregiver, in an amount that does not exceed what is reasonably necessary to assure the uninterrupted availability of cannabis for a period of three months, in any form recommended by the qualified patient's physician for the purpose of alleviating the symptoms or effects of the qualified patient's debilitating medical condition.         *H929-v-1*  General Assembly Of North Carolina Session 2021  1 2 3 4 5 (2) 6 7 8 9 10 11 12 13 14 (3) 15 (4) 16 b. For a qualified patient for whom a delivery method of inhalation of cannabis vapor or smoking is recommended by the qualified patient's physician, "adequate supply" means not more than 24 ounces of cannabis in a form usable for that purpose.     "Bona physician assistant, or nurse practitioner and a patient have a treatment or counseling relationship in which the physician, physician assistant, or nurse practitioner has completed a full assessment of the patient's medical history and current medical condition, including an appropriate physical examination, and the physician, physician assistant, or nurse practitioner is available or offers to provide follow-up care and treatment to the patient, including patient examinations, to determine the efficacy of the use of medical cannabis as a treatment for the patient's medical condition. "Cannabis" means marijuana as defined in G.S. 90-87(16). "Health care provider" means a physician, physician assistant, or nurse practitioner licensed under Article 1 of Chapter 90 of the General Statutes, who is in good standing to practice medicine in this State and authorized to prescribe controlled substances in this State. "Medical use of cannabis" or "medical use" means the acquisition, possession, use, internal possession, delivery, transfer, or transportation of cannabis or paraphernalia relating to the administration of cannabis to treat or alleviate a qualified patient's medical condition or symptoms associated with the medical condition or its treatment. "Qualified patient" means a person who has been diagnosed by a physician as having a debilitating medical condition. "Written certification" means a statement in a patient's medical records or a statement signed by a health care provider with whom the patient has a bona fide health care provider-patient relationship indicating that, in the health care provider's professional opinion, the patient has a medical condition that may benefit from the medical use of cannabis and the potential health benefits of the medical use of cannabis would likely outweigh the health risks for the patient. fide health care provider-patient relationship" means a physician,             17 18 19 (5) 20 21 22 23 24 (6) 25 26 (7) 27 28 29 30 31 32 33 "§ 90-730.1. Health care provider and patient protections for the medical use of cannabis. 34 (a) A qualified patient shall not be subject to arrest, prosecution, or penalty in any 35 manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary 36 action by a business or occupational or professional licensing board or bureau, for the possession 37 or purchase of cannabis for medical use by the qualified patient if all of the following conditions 38 are met: 39 40 41 42 43 (b) 44 qualified patient or designated caregiver is in possession of a written certification and an amount 45 of cannabis that does not exceed the qualified patient's adequate supply. This presumption may 46 be rebutted only by evidence that the qualified patient engaged in conduct related to cannabis for 47 a purpose other than alleviating the qualified patient's medical condition or symptoms associated 48 with the medical condition. 49 (c) For the purposes of medical care, including organ transplants, a qualified patient's 50 authorized use of cannabis in accordance with this Article shall be treated in the same manner as                       (1) The quantity of usable cannabis possessed or purchased does not exceed an adequate supply, as determined by the qualified patient's physician.   (2) The qualified patient is in possession of a written certification from a physician.   A qualified patient is presumed to be engaged in the medical use of cannabis if the         Page 2 House Bill 929-First Edition   General Assembly Of North Carolina Session 2021 1 the authorized use of any other medication used at the direction of a physician and shall not 2 constitute the use of an illegal substance. 3 (d) A health care provider shall not be subject to arrest, prosecution, or penalty in any 4 manner, or denied any right or privilege, or subject to increased monitoring or disciplinary action 5 by the North Carolina Medical Board or any other business or occupational or professional       6 licensing board or bureau for either of the following: Advising a patient about the risks and benefits of the medical use of cannabis or that the patient may benefit from the medical use of cannabis if, in the physician's medical judgment, the potential benefits of the medical use of cannabis would likely outweigh the health risks for that particular patient. Providing a patient with written certification, based upon the physician's assessment of the patient's medical history and current medical condition, that the potential benefits of the medical use of cannabis would likely outweigh the health risks for that particular patient.  7 8 9 (1)    10 11 12 13 14 15 (e) 16 manner, or denied any right or privilege, or subject to disciplinary action by a business or 17 occupational or professional licensing board or bureau for discussing with a patient the benefits 18 or health risks of the medical use of cannabis or the interaction of cannabis with other substances. 19 "§ 90-730.2. Licensing of medical cannabis cultivation and manufacturing.  (2)     A health care provider shall not be subject to arrest, prosecution, or penalty in any      20 (a) The Department of Agriculture and Consumer Services shall adopt rules for the 21 licensing of persons for the cultivation of medical cannabis and the manufacturing of medical 22 cannabis products. The rules adopted by the Department shall include, at a minimum, the 23 following:     24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (b) 40 Assembly no later than January 31, 2023, regarding the licensing system required by this section. 41 "§ 90-730.3. Licensing and regulation of medical cannabis dispensaries. 42 (a) For purposes of this section, the terms "Commission" and "local board" are as defined 43 in G.S. 18B-101. 44 (b) By no later than January 1, 2023, the Commission shall adopt rules for the 45 establishment, licensing, and operation of medical cannabis dispensaries. The rules required 46 under this subsection shall include rules for the establishment and collection of fees for all 47 licenses required under this section, including fees associated with applications for such licenses. 48 (c) In addition to independent dispensaries licensed under subsection (b) of this section, 49 and upon the payment of any fees required under subsection (b) of this section, a local board may 50 establish and operate one medical cannabis dispensary for each ABC store operated by the local 51 board. A local board may enter into a joint venture with an eligible social equity recipient, as (1) (2) (3) Application and annual renewal fees sufficient to completely cover all of the Department's costs for oversight and management of the cultivation of medical cannabis and the production of products containing medical cannabis, as well as the grant program established by G.S. 90-730.4.     Regulation of packaging and labeling of medical cannabis and medical cannabis products. The requirement that medical cannabis products not include nicotine or alcohol and not be in a form or flavor intended to attract unauthorized use for nonmedical purposes or by children.      (4) (5) (6) The Department shall complete all rule adoption and submit a report to the General Regulation of outdoor cultivation of medical cannabis to minimize diversion or theft of medical cannabis for unauthorized uses. Sanitation and testing of medical cannabis processing and manufacturing of medical cannabis products.     Guidelines and restrictions on advertising of medical cannabis and medical cannabis products.                House Bill 929-First Edition Page 3   General Assembly Of North Carolina Session 2021 1 defined in G.S. 90-730.4, for the establishment and operation of a medical cannabis dispensary. 2 Each medical cannabis dispensary established and operated under this subsection shall be located 3 no less than 1,000 feet away from an ABC store, an independent dispensary licensed under 4 subsection (b) of this section, an elementary or secondary school, or a religious institution. 5 "§ 90-730.4. Social Equity Business Development Grant program. 6 (a) For purposes of this section, the term "eligible social equity recipient" means an 7 applicant for a license under G.S. 90-730.2 for which at least sixty-six percent (66%) of 8 ownership interest in the applicant has any of the following characteristics:           9 10 11 12 13 14 15 16 17 18 (b) 19 Program (Grant Program) to provide grants and low interest loans to an eligible social equity 20 recipient. Two hundred fifty thousand dollars ($250,000) of the licensing fees collected by the 21 Department under G.S. 90-730.2 in each fiscal year shall be used by the Department to fund the 22 Grant Program. Eligible uses of the grant funds by shall include the following: (1) (2) (3) (4) A prior conviction for simple possession of cannabis. A family member with a conviction for simple possession of cannabis. For purposes of this subdivision, family member means a spouse, parent, stepparent, sibling, step-sibling, child, or stepchild. Residence in an area that is economically distressed, as determined by the Department in consultation with the Department of Commerce, or with a disproportionate number of arrests for cannabis violations, as determined by the Department in consultation with the Department of Public Safety. A degree from a public or private historically black college or university.          The Department shall establish the Social Equity Business Development Grant      23 24 25 26 (c) 27 Committee on Agriculture and Natural and Economic Resources and the Fiscal Research 28 program on the Grant Program. The report shall include grant recipients, amount distributed to 29 each recipient, and a description of activities funded by each grant." (1) Elimination or amelioration of barriers to licensing under this Article. (2) Technical assistance. (3) Outreach and promotion of medical cannabis cultivation. The Department shall annually report to the chairs of the Joint Legislative Oversight        30 31 PART II. EXPUNCTION OF MISDEMEANOR AND FELONY MARIJUANA 32 OFFENSES 33 SECTION 2.1.(a) Article 5 of Chapter 15A of the General Statutes is amended by 34 adding two new sections to read: 35 "§ 15A-145.8B. Automatic expunction of misdemeanor marijuana offenses. 36 (a) If a person was charged with (i) a misdemeanor violation of G.S. 90-95(a)(3) for 37 possession of marijuana or hashish or (ii) a violation of G.S. 90-113.22A, and the person was 38 convicted, the conviction shall be ordered to be automatically expunged no later than December 39 31, 2024, in the manner set forth in this section. 40 (b) The clerk of each superior court shall determine which cases meet the criteria for 41 expunction set forth in subsection (a) of this section. Upon completing the review required under 42 this subsection, the clerk of each superior court shall prepare an order of expungement for each 43 case that meets the criteria set forth in subsection (a) of this section and was finalized in his or 44 her court. Upon completion of the order of expungement, the court shall order the expunction. 45 Upon order of expungement, the clerk shall forward the petition to the Administrative Office of 46 the Courts. 47 (c) No person as to whom such an order has been entered under this section shall be held 48 thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 49 giving a false statement or response to any inquiry made for any purpose, by reason of the 50 person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 51 or trial.                  Page 4 House Bill 929-First Edition   General Assembly Of North Carolina Session 2021 1 (d) The court shall also order that the conviction ordered expunged under this section be 2 expunged from the records of the court and direct all law enforcement agencies bearing record 3 of the same to expunge their records of the conviction. The clerk shall notify State and local 4 agencies of the court's order as provided in G.S. 15A-150. 5 (e) Any other applicable State or local government agency shall expunge from its records 6 entries made as a result of the conviction ordered expunged under this section. The agency shall 7 also reverse any administrative actions taken against a person whose record is expunged under 8 this section as a result of the charges or convictions expunged. This subsection shall not apply to 9 the Department of Justice for DNA records and samples stored in the State DNA Database and 10 the State DNA Databank. 11 (f) Except as otherwise provided by law, it is unlawful for any person having or acquiring 12 access to a record expunged under this section to disclose to another person any expunged 13 information from it without an order from the court that ordered the record expunged. A person 14 who violates this subsection is guilty of a Class 1 misdemeanor. 15 (g) An employer or educational institution shall not, in any application, interview, or 16 otherwise, require an applicant for employment or admission to disclose any information 17 expunged under this section. An applicant need not, in answer to any question concerning any 18 arrest, criminal charge that has not resulted in a conviction, or conviction, include a reference to 19 any information expunged under this section. 20 "§ 15A-145.8C. Expunction of certain felony marijuana offenses. 21 (a) If a person was charged with a felony violation of G.S. 90-95 as it relates to marijuana, 22 and that person was convicted, the person may file a petition in the court of the county where the 23 person was convicted for expunction of the offense from the person's criminal record and any 24 other official record containing an entry relating to the person's apprehension, charge, trial, or 25 conviction. The petition cannot be filed earlier than five years after (i) the date of conviction or 26 (ii) any active sentence, period of probation, or post-release supervision has been served, 27 whichever is later. The court, after notice to the district attorney, shall hold a hearing on the 28 petition and, upon finding that the requirements of this section have been met, and that the 29 continued existence and possible dissemination of information relating to the conviction causes 30 or may cause circumstances that constitute a manifest injustice to the petitioner, the court shall 31 order the expunction. 32 (b) Any petition for expungement under this section shall be on a form approved by the 33 Administrative Office of the Courts and be filed with the clerk of superior court. Upon order of 34 expungement, the clerk shall forward the petition to the Administrative Office of the Courts. 35 (c) No person as to whom such an order has been entered under this section shall be held 36 thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 37 giving a false statement or response to any inquiry made for any purpose, by reason of the 38 person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 39 or trial. 40 (d) The court shall also order that the conviction ordered expunged under this section be 41 expunged from the records of the court and direct all law enforcement agencies bearing record 42 of the same to expunge their records of the conviction. The clerk shall notify State and local 43 agencies of the court's order as provided in G.S. 15A-150. 44 (e) Any other applicable State or local government agency shall expunge from its records 45 entries made as a result of the conviction ordered expunged under this section. The agency shall 46 also reverse any administrative actions taken against a person whose record is expunged under 47 this section as a result of the charges or convictions expunged. This subsection shall not apply to 48 the Department of Justice for DNA records and samples stored in the State DNA Database and 49 the State DNA Databank. 50 (f) A person who files a petition for expunction under this section must pay the clerk of 51 superior court a fee of one hundred dollars ($100.00) at the time the petition is filed. Fees                                                     House Bill 929-First Edition Page 5    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 General Assembly Of North Carolina Session 2021 collected under this subsection shall be deposited in the General Fund. This subsection does not apply to petitions filed by an indigent. (g) Except as otherwise provided by law, it is unlawful for any person having or acquiring access to a record expunged under this section to disclose to another person any expunged information from it without an order from the court that ordered the record expunged. A person who violates this subsection is guilty of a Class 1 misdemeanor. (h) An employer or educational institution shall not, in any application, interview, or otherwise, require an applicant for employment or admission to disclose any information expunged under this section. An applicant need not, in answer to any question concerning any arrest, criminal charge that has not resulted in a conviction, or conviction, include a reference to any information expunged under this section." SECTION 2.1.(b) G.S. 15A-145.8B(f) and G.S. 15A-145.8C(g), as amended by subsection (a) of this section, become effective December 1, 2021, and apply to offenses committed on or after that date. The remainder of this Part becomes effective December 1, 2021. PART III. UNLAWFUL CONSUMPTION OF MEDICAL CANNABIS IN MOTOR VEHICLES SECTION 3.1.(a) Article 3 of Chapter 20 of the General Statutes is amended by adding a new section to read: "§ 20-138.8. Using or consuming medical cannabis as driver or passenger in a motor vehicle. (a) Offense. – It is unlawful for any person to use or consume medical cannabis while driving a motor vehicle on a highway or the right-of-way of a highway or while being a passenger in a motor vehicle being driven on a highway or the right-of-way of a highway. (b) Inference. – In a prosecution under this section, the trier of fact may infer that a person has consumed medical cannabis in violation of subsection (a) of this section if (i) an open container is located within the passenger area of the motor vehicle, (ii) the medical cannabis in the open container has been at least partially removed, and (iii) the appearance, conduct, speech, or other physical characteristic of the person, excluding odor, is consistent with the consumption of medical cannabis. (c) Punishment. – Unless the conduct is covered under some other provision of law providing greater punishment, a violation of this section is a Class 3 misdemeanor." SECTION 3.1.(b) This Part becomes effective December 1, 2021, and applies to offenses committed on or after that date. PART IV. OTHER PROHIBITED CONDUCT INVOLVING MEDICAL CANNABIS SECTION 4.1.(a) Chapter 14 of the General Statutes is amended by adding a new Article to read: "Article 41A. "Medical Cannabis. "§ 14-332.1. Consuming medical cannabis, or offering to another, in public place; penalty. (a) Offense. – No person shall consume medical cannabis, or offer medical cannabis to another, whether accepted or not, at or in any public place. (b) Punishment. – Any person who violates this section is subject to a civil penalty of no more than twenty-five dollars ($25.00) for a first offense. A person who is convicted under this section of a second offense is subject to a twenty-five dollar ($25.00) civil penalty and shall be ordered to enter a substance abuse treatment program, education program, or both, if available, that in the opinion of the court best suits the needs of the accused. A person convicted under this section of a third or subsequent offense is guilty of a Class 3 misdemeanor. "§ 14-332.2. Consuming or possessing medical cannabis in or on public school grounds; penalty.                                      Page 6 House Bill 929-First Edition   General Assembly Of North Carolina Session 2021 1 (a) Offense. – No person shall possess or consume any medical cannabis in or upon the 2 grounds of any public elementary or secondary school during school hours or school or student 3 activities. 4 (b) Punishment. – Any person convicted of a violation of this section is guilty of a Class 5 A1 misdemeanor. Notwithstanding G.S. 15A-1340.23, a sentence of imprisonment of up to 180 6 days may be imposed for a violation of this section. 7 "§ 14-332.3. Possession and consumption of medical cannabis by a person under 18 years         8 9 (a) 10 cannabis. 11 (b) 12 infraction and the court shall require the person to enter a substance abuse treatment program, 13 education program, or both, if available, that in the opinion of the court best suits the needs of 14 the person. 15 "§ 14-332.4. Illegal importation, shipment, and transportation of medical cannabis; 16 penalty. 17 (a) Offense. – Except as allowed by applicable law, no medical cannabis shall be 18 imported, shipped, transported, or brought into the State. 19 (b) Punishment. – Any person convicted of a violation of this section is guilty of a Class 20 A1 misdemeanor. Notwithstanding G.S. 15A-1340.23, a sentence of imprisonment of up to one 21 year may be imposed for a violation of this section." 22 SECTION 4.1.(b) This Part becomes effective December 1, 2021, and applies to 23 offenses committed on or after that date. 24 25 PART V. TAXATION OF MEDICAL MARIJUANA AND ESTABLISHMENT OF 26 UNIVERSITY CANNABIS EQUITY INVESTMENT FUND 27 SECTION 5.1. G.S. 105-113.106 reads as rewritten: 28 "§ 105-113.106. Definitions. 29 The following definitions apply in this Article: of age.  Offense. – No person under 18 years of age may possess or consume medical Punishment. – Any person convicted of a violation of this section is guilty of an              30 (1) 31 (2) 32 (3) 33 34 35 36 37 38 39 40 41 42 43 ... 44 (6) 45 46 47 48 ... 49 (9) 50 Controlled Substance. – Defined in G.S. 90-87. Repealed by Session Laws 1995, c. 340, s. 1. Dealer. – Any of the following: a. b. c. d. A person who actually or constructively possesses more than 42.5 grams of marijuana, seven or more grams of any other controlled substance that is sold by weight, or 10 or more dosage units of any other controlled substance that is not sold by weight. A person who in violation of Chapter 18B of the General Statutes possesses illicit spirituous liquor for sale. A person who in violation of Chapter 18B of the General Statutes possesses mash. A person who in violation of Chapter 18B of the General Statutes possesses an illicit mixed beverage for sale. Marijuana. – All parts of the plant of the genus Cannabis, Cannabis not taxed pursuant to Article 2E of this Chapter, whether growing or not; the seeds of this plant; the resin extracted from any part of this plant; and every compound, salt, derivative, mixture, or preparation of this plant, its seeds, or its resin. Unauthorized substance. – A controlled substance, an illicit mixed beverage, illicit spirituous liquor, or mash."    House Bill 929-First Edition Page 7    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 General Assembly Of North Carolina Session 2021 SECTION 5.2. Subchapter I of Chapter 105 of the General Statutes is amended by adding a new Article to read: "Article 2E. "Medical Marijuana. "§ 105-113.120. Definitions. The definitions of G.S. 90-730 apply in this Article. "§ 105-113.121. Medical marijuana tax; exceptions. (a) Tax. – A tax of ten percent (10%) is levied on the sale in the State by a medical cannabis dispensary operating pursuant to G.S. 90-730.3 of cannabis for medical use. The tax shall be in addition to any tax imposed under any other provision of federal, State, or local law.         (b) Exceptions. – The tax shall not apply to any of the following sales:  (1) (2) (3) From a medical cannabis dispensary operating pursuant to G.S. 90-730.3 to another such dispensary. Of industrial hemp by a grower, processor, or dealer under the provisions of Article 50F of Chapter 106 of the General Statutes. Of industrial hemp extract or food containing an industrial hemp extract under      the provisions of Article 50F of Chapter 106 of the General Statutes. "§ 105-113.122. Optional local marijuana tax. (a) Local Tax. – A governing body of a local governmental unit may, by resolution, levy a tax of two percent (2%) on any sale in the jurisdiction of the unit taxable under this Article as provided in this section. The tax shall be in addition to any local sales tax imposed by law. Other than the taxes authorized and identified in this subsection, the governing body of a local governmental unit shall not impose any other tax on a sale taxable under this Article. (b) Joint Jurisdiction. – If a municipality imposes a tax under this section and the surrounding county imposes a tax under this section, both taxes apply within the limits of the municipality. (c) Interpretation. – Nothing in this section shall be construed to prohibit a governing body from imposing any tax authorized by law on a person or property regulated under this Article. Nothing in this section shall be construed to limit the authority of any governing body to impose a license or privilege tax or fee on a business engaged in whole or in part in sales taxable under this Article if such tax or fee is (i) based on an annual or per event flat fee authorized by law or (ii) is an annual license or privilege tax authorized by law and such tax includes sales or receipts taxable under this Article in its taxable measure. (d) Notice. – Any governing body that adopts a resolution pursuant to subsection (a) of this section shall, within 30 days, notify the Department and any retail marijuana store in the jurisdiction of the local governmental unit of the resolution's adoption. The resolution shall take effect on the first day of the second month following its adoption. (e) Administration. – Any tax levied under this section shall be administered and collected by the Department in the same manner as provided for the tax imposed under Article 39 of this Chapter, provided that the Secretary shall not make a distribution between counties and cities, as provided in G.S. 105-472. For purposes of the tax imposed by a municipality, the term "county" shall be read as "municipality." (f) Use. – A local governmental unit may use the proceeds of a tax levied under this section for any public purpose. "§ 105-131.123. Use of State tax proceeds. The Secretary must credit the net proceeds of the State tax collected pursuant to G.S. 105-131.121 as follows: (1) Fifty percent (50%) to the General Fund. (2) The remainder to the University Cannabis Equity Investment Fund established under G.S. 116-29.2."