TerraLex Cross-Border Guide to Cannabis Guide

Yes, but only in very limited circumstances. North Carolina allows medical marijuana only as allowed under the Epilepsy Alternative Treatment Act, N.C. Gen. Stat. § 90-113.101 et seq. (the Epilepsy Act).

There is not an adult-use marijuana law in North Carolina yet. Marijuana is still a controlled substance in North Carolina, N.C. Gen. Stat. § 90-87(16), although a “hemp extract” governed by the Epilepsy Act may be possessed by qualifying patients and caregivers. In this legislation, the state legislature also encouraged the medical schools at the University of North Carolina, East Carolina University, Duke University, and Wake Forest University to research hemp extract development for medical purposes.

North Carolina law does not allow the cultivation of marijuana for medicinal use. The Epilepsy Act and regulations do not speak to the cultivation of hemp extract products, but the North Carolina Department of Health and Human Services (NCDHHS) website provides that “It is illegal to cultivate or produce any hemp extract for the purpose of treating intractable epilepsy, or otherwise, in the state of North Carolina.” NCDHS, Epilepsy Alternative Treatment Act: FAQ, NCDHHS.Gov, https://www.ncdhhs.gov/divisions/mental-health-developmental-disabilities-and-substance-abuse/north-carolina-drug-control#5:

North Carolina law does permit the possession and use of “hemp extracts” by qualifying persons, but does not provide for the cultivation or processing of cannabis products for the creation of hemp extracts. At present, hemp extracts must be imported from out of state for use in very limited circumstances.

North Carolina law does not allow the manufacture of products containing marijuana for medicinal use.

North Carolina law does not allow the distribution to re-sellers of products containing marijuana for medicinal use.

The Epilepsy Act contemplates hemp extract acquired from other jurisdictions. “[N]eurologists may approve of dispensation to a registered caregiver, as approved by this Article, hemp extract acquired from another jurisdiction.” N.C. Gen. Stat. § 90-113.105. However, no laws or regulations detail the process for such acquisition.

Under North Carolina law, marijuana is illegal unless it qualifies as a “hemp extract.” Possession of a hemp extract by qualifying individuals is exempt from the penalties of the NC Controlled Substances Act. N.C. Gen. Stat. § 90-94.1.

A “Hemp Extract” is “an extract from a cannabis plant, or a mixture or preparation containing cannabis plant material, that has all of the following characteristics: 1. Is composed of less than nine-tenths of one percent (0.9%) tetrahydrocannabinol by weight. 2. Is composed of at least five percent (5%) cannabidiol by weight. 3. Contains no other psychoactive substance.” N.C. Gen. Stat. § 90-94.1

Because the scope of medical marijuana is so limited in North Carolina, there is no local government regulation of the possession “hemp extracts” for medical purposes.

Because the scope of medical marijuana is so limited in North Carolina, it has had very little, if any, impact on other industries in North Carolina.

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Yes, industrial hemp is governed by the North Carolina Industrial Hemp Law, N.C. Gen. Stat. § 106-568.50 et seq. “Industrial hemp” is defined as “[a]ll parts and varieties of the plant Cannabis sativa (L.), cultivated or possessed by a grower licensed by the Commission, whether growing or not, that contain a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of one percent (0.3%) on a dry weight basis.” N.C. Gen. Stat. § 106-568.51. North Carolina further defines “hemp products” to be “[a]ll products made from industrial hemp.” Id.

Cultivators must be licensed by the North Carolina Industrial Hemp Commission. N.C. Gen. Stat. § 106-568.51, and must maintain a written agreement with a state land-grant university. N.C. Gen. Stat. § 106-568.53A. The Industrial Hemp Commission has enacted rules related to cultivation licenses. 02 NCAC 62 .0105-0107.

There are two types of cultivation licenses the Industrial Hemp Commission will provide: a research-only license and a research-with-intent-to-market license. 02 NCAC 62 .0105.

North Carolina does not provide for a separate license for processors or manufacturers of industrial hemp. “Growers” must be licensed to grow industrial hemp by the Industrial Hemp Commission. N.C. Gen. Stat. § 106-568.51. And “licensed growers” are permitted to participate in North Carolina’s industrial hemp research program, which includes studying marketplace opportunities for hemp products. N.C. Gen. Stat. § 106-568.55.

The Industrial Hemp Commission decreed that “Processors of industrial hemp in North Carolina shall register with the Commission.” 02 NCAC 62 .0108. Although neither the industrial hemp law nor the Industrial Hemp Commission’s rules describe a process for registering as an industrial hemp processor.

The North Carolina Department of Agriculture website provides the form for an industrial hemp processor to register, and notes “The Industrial Hemp Commission does not have authority to license or monitor the registered processors.” NCDA, Industrial Hemp Pilot Program: Registered Processors, NCAGR.GOV, http://www.ncagr.gov/hemp/ProcessorsInfo.htm

North Carolina’s industrial hemp law provides a “licensed grower” may conduct “research” on the market for hemp products. N.C. Gen. Stat. § 106-568.55. The Industrial Hemp Commission has enacted a rule that allows a cultivator to secure a “research with intent to market” license that allows the cultivator to “transport to the market for sale.” 02 NCAC 62.0105.

Beyond this, North Carolina laws do not currently contain any licensing or permitting requirements for hemp retail sale or distribution.

North Carolina laws and regulations do not currently contain any licensing requirements specific to the sale of hemp products directly to consumers.

North Carolina laws and regulations do not currently contain any purchasing or marketing requirements specific to hemp.

“Industrial hemp” is defined as “[a]ll parts and varieties of the plant Cannabis sativa (L.), cultivated or possessed by a grower licensed by the Commission, whether growing or not, that contain a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of one percent (0.3%) on a dry weight basis.” N.C. Gen. Stat. § 106-568.51. North Carolina further defines “hemp products” to be “[a]ll products made from industrial hemp.” Id.

Other than local zoning and tax regulations, there are no local controls specific to hemp.

A growing number of North Carolina's farmers are turning to hemp production as a new source of revenue, spurred by the popularity of CBD products and the Trump administration's trade war with China, which has hit the state's tobacco industry especially hard. There are over 1,500 farmers licensed to grow hemp now in North Carolina.

Yes.

Cultivators must be licensed by the North Carolina Industrial Hemp Commission. N.C. Gen. Stat. § 106-568.51, and must maintain a written agreement with a state land-grant university. N.C. Gen. Stat. § 106-568.53A. The Industrial Hemp Commission has enacted rules related to cultivation licenses. 02 NCAC 62 .0105-0107.

There are two types of cultivation license the Industrial Hemp Commission will provide: a research-only license, and a research-with-intent-to-market license. 02 NCAC 62 .0105

The Industrial Hemp Commission rules state that “Processors of industrial hemp in North Carolina shall register with the Commission.” 02 NCAC 62 .0108. Although neither the industrial hemp law nor the Industrial Hemp Commission’s rules describe a process for registering as an industrial hemp processor.

The North Carolina Department of Agriculture website provides the form for an industrial hemp processor to register, and notes “The Industrial Hemp Commission does not have authority to license or monitor the registered processors.” NCDA, Industrial Hemp Pilot Program: Registered Processors, NCAGR.GOV, http://www.ncagr.gov/hemp/ProcessorsInfo.htm

North Carolina’s industrial hemp law provides a “licensed grower” may conduct “research” on the market for hemp products. N.C. Gen. Stat. § 106-568.55. The Industrial Hemp Commission has enacted a rule that allows a cultivator to secure a “research with intent to market” license that allows the cultivator to “transport to the market for sale.” 02 NCAC 62.0105.

Beyond this, North Carolina laws do not currently contain any licensing or permitting requirements for hemp retail sale or distribution.

North Carolina laws and regulations do not currently contain any licensing requirements specific to the sale of CBD products directly to consumers.

The North Carolina Department of Agriculture’s current policy is that CBD derived from hemp is not allowed in food or drinks.

The North Carolina Department of Agriculture’s current policy is that CBD derived from hemp is not allowed in food or drinks.

Other than local zoning and tax regulations, there are no local controls specific to CBD products.

A growing number of North Carolina's farmers are turning to hemp production as a new source of revenue, spurred by the popularity of CBD products. There are over 1,500 farmers licensed to grow hemp now in North Carolina. There has also been a significant increase in the retail sales of CBD products with the establishment of stores across the state. A number of processors and distributors have also located facilities within North Carolina.

The List: - North Carolina Department of Agriculture and Consumer Services Plant Industry Division (NCDA)

• North Carolina Industrial Hemp Commission, established per N.C. Gen. Stat. § 106-568.52.
• North Carolina Board of Agriculture (authority to regulate agriculture in general).
• North Carolina Department of Health and Human Services (could potentially promulgate regulations in the future).
• Hemp seeds or transplants are subject to the requirements of the North Carolina Crop Improvement Association. 02 NCAC 62.0101.

The industrial hemp law provides authority to the Industrial Hemp Commission to, most pertinently, (1) establish the industrial hemp program to be managed by state land-grant universities; (2) to issue cultivation licenses; (3) to establish reporting procedures for cultivators and processors; and (4) to adopt rules related to the testing of industrial hemp, the supervision of the hemp’s cultivation and harvest, and the production and sale of hemp. N.C. Gen. Stat. § 106-568.53.

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The North Carolina Constitution prohibits voter initiatives other than statewide bond referenda or constitutional amendments. Thus, the only avenue for marijuana legalization in the state is through legislative action. Based on the current makeup of the North Carolina General Assembly, the prospects for legalization are dim.

The North Carolina Commissioner of Agriculture and several leading legislators have shown support for expanding the hemp industry in North Carolina. Their actions have opened up a market for a variety of CBD products in the state and have had a significant economic impact, especially in farming communities.

If enacted, the North Carolina Farm Act of 2019 will be the top development for the hemp and CBD industries in North Carolina. It will expand the powers of the Industrial Hemp Commission, create more opportunities for cultivation of hemp, clarify the impact of THC found in hemp, and provide state assistance in the marketing of hemp.

Presently, the House and Senate cannot agree on the legal treatment of “smokable” hemp. The legislation has stalled while negotiations continue.

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