Section 6


6. “Regulated Cannabis Supply System”
(a) As used in this section, “Department” means the North Carolina Department of
Agriculture and Consumer Services.
(b) Not later than 120 days after the effective date of this act, the Department shall
establish a medical cannabis supply system that (i) provides a safe, regulated supply of quality
medical cannabis for use by qualified patients who hold valid registry identification cards and generates sufficient revenue for the Department to maintain and operate the system. The Department shall not use any appropriations from the General Fund to establish or operate the system. The system shall be funded by the fees authorized in this section.
(c) Medical Cannabis Center License.
(d) Medical Cannabis Growers Collective Membership License.
(e) Medical Cannabis Patient Home Grower License.
(1) No person shall establish or operate a medical cannabis center without first
applying for a license to the Department and submitting the required
information on application forms provided by the Department. The application
form shall require at least all of the following:
a. The applicant’s name and any name the applicant will use in the operation of a medical cannabis center, medical collective grower association, or medical patient home grower.
b. The address of any property the applicant will use to possess, deliver, transport, dispense, or distribute cannabis.
c. The name, address, and date of birth of each principal officer and board member of the medical cannabis center.
d. The name, address, and date of birth of each employee of the medical cannabis center and or medical cannabis collective member.
e. For first-year licensees, a nonrefundable license fee in the amount of For first-year licensees, a nonrefundable license fee in the amount of five thousand dollars ($5,000) for medical cannabis centers. Five hundred dollars ($500.00) is the fee for a medical cannabis collective. Fifty dollars ($50.00) for a patient with a home grow.
f. For licensees seeking license renewal, a nonrefundable renewal fee in an
amount not less than five thousand dollars ($5,000), Five Hundred ($500.00) or Fifty Dollars ($50.00), as specified in rules adopted pursuant to subsection (s) of this section.
g. Proof of North Carolina residency for each principal officer, board member, and employee of the medical cannabis center or medical cannabis collective.
h. Any other information the Department considers necessary to ensure compliance with the terms of this Article.
(2) Unless suspended or revoked, a medical cannabis center license is valid for a
period not to exceed 12 months from the date of issuance.
(3) A licensee shall apply for renewal, as necessary, at least 30 days prior to the
expiration of a current license.
(4) No later than 30 days after issuing or renewing a license under this subsection,
the Department shall issue a medical cannabis center registry identification card
to each director and employee listed on the application or renewal form upon
b. Contract with a producer to sell live plants on the premises of the
medical cannabis center to registry identification cardholders.
c. Assist registry identification receipt of a ten-dollar ($10.00) fee per cardholder.
(5) A licensee shall notify the Department of any change in the information
submitted on the license application or renewal form within 30 days after the change.
(6) A medical cannabis center licensee may do all of the following:
a. Sell cannabis, cannabis-infused products, cannabis plants, cannabis
seeds, cultivation equipment, and related supplies and educational materials only to registry identification on cardholders with other products and services, including equipment, supplies, and educational materials.
(6) (B) A medical cannabis collective may do all the following:
Sell Cannabis at a collective price and tax rate of 1.5%, sell cannabis-infused products at a collective price, cannabis plants, cannabis seeds, cultivation equipment, related supplies and educational materials only to registered medical cannabis collective members.
Contract with a producer to sell live plants on the premises of the medical cannabis collective or medical cannabis collective members.
Assist registry identification member holders with other products and services, including equipment, supplies, and educational materials.
(6) (C) Medical Cannabis Patient Home Growers may not sell any medical cannabis or cannabis infused products unless the Patient is a part of a Medical Cannabis Collective. Home Growers may engage in all activities that Medical Cannabis Collectives are permitted to. Homegrown Medical Cannabis patients have the right to obtain and possess all the materials that medical cannabis centers and medical cannabis collective posses in order to produce their own medical cannabis. Medical Cannabis Patients will obtain the right to All documentation is to be in accordance to the chain of custody mandates for a medical cannabis center.
(7) A medical cannabis center licensee shall not cultivate cannabis unless
separately licensed as a producer of medical cannabis under subsection (c) of this section.
(7) (B) A medical cannabis collective shall cultivate cannabis in accordance to all laws listed in subsection ( C ) of this section. All documentation is to be in accordance to the chain of custody applying to medical cannabis centers.
(9) The records of a licensed medical cannabis center/medical cannabis collective/personal patient home grow are subject to the same restrictions imposed on pharmacy records pursuant to section 6 of this article.
Section 6 of this article shall apply to each medical cannabis center as if it were a
pharmacy regulated under Article 4A of Chapter 90 of the General Statutes.
(d) Producer of Medical Cannabis License.
(1) No person shall cultivate cannabis for sale to a licensed medical cannabis center or medical cannabis collective without first applying for a license to the Department and submitting the
required information on application forms provided by the Department. The application form shall require at least all of the following:
a. The applicant’s name and any name the applicant will use in the operation of a medical cannabis center, medical collective grower association, or medical patient home grower.
b. The address of any property the applicant will use to possess, deliver, transport, dispense, or distribute cannabis.
c. The name, address, and date of birth of each principal officer and board member of the medical cannabis center.
d. The name, address, and date of birth of each employee of the medical cannabis center and or medical cannabis collective member.
e. For first-year licensees, a nonrefundable license fee in the amount of For first-year licensees, a nonrefundable license fee in the amount of five thousand dollars ($5,000) for medical cannabis centers. Five hundred dollars ($500.00) is the fee for a medical cannabis collective. Fifty dollars ($20.00) for a patient with a home grow.
f. For licensees seeking license renewal, a nonrefundable renewal fee in an
amount not less than five thousand dollars ($5,000), Five Hundred ($500.00) or Fifty Dollars ($20.00), as specified in rules adopted pursuant to subsection (s) of this section.
g. Proof of North Carolina residency for each principal officer, board member, and employee of the medical cannabis center or medical cannabis collective.
h. Any other information the Department considers necessary to ensure compliance with the terms of this Article.
(2) Unless suspended or revoked, a medical cannabis center license is valid for a
period not to exceed 12 months from the date of issuance.
(3) A licensee shall apply for renewal, as necessary, at least 30 days prior to the
expiration of a current license.
(4) No later than 30 days after issuing or renewing a license under this subsection,
the Department shall issue a medical cannabis center registry identification card
to each director and employee listed on the application or renewal form upon
receipt of a ten-dollar ($10.00) fee per cardholder.
(5) A licensee shall notify the Department of any change in the information
submitted on the license application or renewal form within 30 days after the change.
(6) A medical cannabis center licensee may do all of the following:
a. Sell cannabis, cannabis-infused products, cannabis plants, cannabis
seeds, cultivation equipment, and related supplies and educational
materials only to registry identification cardholders.
b. Contract with a producer to sell live plants on the premises of the
medical cannabis center to registry identification cardholders.
c. Assist registry identification cardholders with other products and
services, including equipment, supplies, and educational materials.
(6) (B) A medical cannabis collective may do all the following:
Sell Cannabis at a collective price, sell cannabis-infused products at a collective price and tax rate of 1.5%, cannabis plants, cannabis seeds, cultivation equipment, related supplies and educational materials only to registered medical cannabis collective members.
Contract with a producer to sell live plants on the premises of the medical cannabis collective or medical cannabis collective members.
Assist registry identification member holders with other products and services, including equipment, supplies, and educational materials.
(6) (C) Medical Cannabis Patient Home Growers may sell any medical cannabis or cannabis infused products to the Medical Cannabis Collective they are licensed to. Homegrown Medical Cannabis patients have the right to obtain and possess all the materials that medical cannabis centers and medical cannabis collective posses in order to produce their own medical cannabis. All documentation is to be in accordance to the chain of custody listed in this article.
(7) A medical cannabis center licensee shall not cultivate cannabis unless
separately licensed as a producer of medical cannabis under subsection (c) of
this section.
(7) (B) A medical cannabis collective shall cultivate cannabis in accordance to all laws listed in subsection ( C ) of this section. All documentation is to be in accordance to the chain of custody applying to medical cannabis centers.
(8) A medical cannabis center/medical cannabis collective, licensee and its directors, agents, and employees are exempt from the criminal laws of this State for possession, production,
delivery, or transportation of cannabis, or aiding and abetting another in the
possession, production, delivery, or transportation of cannabis, or any other
criminal offense in which possession, production, delivery, or transportation of
cannabis is an element if the medical cannabis center and the directors, agents,
and employees of the medical cannabis center are in substantial compliance
with this section and the applicable rules adopted by the Department for
regulating medical cannabis centers.
(9) The records of a licensed medical cannabis center/medical cannabis collective are subject to the same restrictions imposed on pharmacy records pursuant to section 6 of this article.
Section 6 of this article shall apply to each medical cannabis center as if it were a
pharmacy regulated under Article 4A of Chapter 90 of the General Statutes.
(d) Producer of Medical Cannabis License.
(1) No person shall cultivate cannabis for sale to a licensed medical cannabis center or medical cannabis collective without first applying for a license to the Department and submitting the
required information on application forms provided by the Department. The application form shall require at least all of the following:
a. The name of the person responsible for the medical cannabis production
site and the name of each individual employed by that person.
b. The address of each property, location, or premises used or proposed for
use by the producer to produce cannabis.
c. The name, address, and date of birth of each principal officer and board
member of the producer.
d. The name, address, and date of birth of each employee of the producer.
e. For first-year licensees, a nonrefundable license fee in the amount of five thousand dollars ($5,000.00) for medical cannabis centers and five hundred dollars ($500.00) for medical cannabis collectives.
f. For licensees seeking license renewal, a nonrefundable renewal fee in an
amount not less than five thousand dollars ($5,000) for a medical cannabis center and five hundred dollars ($500.00) dollars for a medical cannabis collective as specified in the rules adopted pursuant to subsection (s) of this section.
g. Proof of North Carolina residency for each producer of medical
Cannabis center and medical cannabis collective, also each employee of the producer.
h. Proof that the producer of medical cannabis and each of the producer’s employees has attained the age of 21 years.
i. Any other information the Department considers necessary to ensure compliance with this Article.
(2) Unless suspended or revoked, a producer of medical cannabis license is valid
for a period not to exceed 12 months from the date of issuance.
(3) A licensee shall notify the Department of any change in the information
submitted on the application form within 30 days after the change.
(4) A licensee shall apply for renewal, as necessary, at least 30 days prior to the
expiration of a current license.
(5) Not later than 30 days after issuing or renewing a producer of medical cannabis
Cannabis license, the Department shall issue a producer of medical cannabis registry
identification card to the producer and to each of the producer’s employees
upon payment of a fee of ten dollars ($10.00) per cardholder.
(6) The Department shall issue a medical cannabis production site card to each
licensed producer of medical cannabis for each property, location, or premises
approved for cannabis production under this section. The card shall be posted
conspicuously at the medical cannabis production site.
(e) Producer of Cannabis-Infused Products License.
(1) No person shall establish or operate a business to produce cannabis-infused
products without first applying for a license to the Department and submitting
the required information on application forms provided by the Department. The
application form shall require at least all of the following:
a. The name of the person or entity responsible for the cannabis production
site and any employee of that person or entity.
b. The address of each property, location, or premises used or proposed for
use by the producer of cannabis-infused products to produce cannabis
and cannabis-infused products.
c. The name, address, and date of birth of each principal officer and board
member of the producer of cannabis-infused products.
d. The name, address, and date of birth of each employee of the producer
of cannabis-infused products.
e. For first-year licensees, a nonrefundable license fee in the amount of
five thousand dollars ($5,000) for medical cannabis centers, five hundred dollars for medical cannabis collectives.
f. For licensees seeking license renewal, a nonrefundable fee in an amount
not less than five thousand dollars ($5,000)for medical cannabis centers and five hundred dollars, ($500.00) for medical cannabis collectives, as specified in rules adopted pursuant to subsection (s) of this section.
g. Proof of North Carolina residency for the producer of cannabis-infused
products and each of the producer’s employees.
h. Proof that the producer of cannabis-infused products and each of the
producer’s employees has attained the age of 21 years.
Any other information the Department considers necessary to ensure compliance with the terms of this Article.
(2) Unless suspended or revoked, a license to produce cannabis-infused products isvalid for a period not to exceed 12 months from the date of issuance.
(3) A licensee shall notify the Department of any change in the information 1
submitted on the application form within 30 days after the change. 2
(4) A licensee shall apply for renewal, as necessary, at least 30 days prior to the 3
expiration of a current license.
(5) Not later than 30 days after issuing or renewing a license to produce 5
cannabis-infused products, the Department shall issue a registry identification 6
card to the licensed producer of cannabis-infused products and to each of the
producer’s employees upon payment of a fee of ten dollars ($10.00) per
cardholder.
(6) The Department shall issue a medical cannabis production site card to each
producer of cannabis-infused products for each property, location, or premises
approved for production of cannabis-infused products under this section. The
card shall be conspicuously posted at the location of the medical cannabis
production site.
(f) Permissible Sales Transactions. – All cannabis sold through the regulated medical
cannabis supply system established under this section shall be subject to the following limitations and requirements:
(1) Only persons licensed as a medical cannabis center or medical cannabis collective under subsection (b) of this section are authorized to sell cannabis or cannabis-infused products to qualified patients or designated caregivers through the system.
(2) Only persons licensed as a producer of medical cannabis under subsection (c)
of this section or a producer of cannabis-infused products under subsection (d)
of this section are authorized to produce cannabis for sale to licensed medical
cannabis centers through the system.
(3) A licensed medical cannabis center or medical cannabis collective shall not sell cannabis, cannabis-infused products, cannabis plants, cannabis seeds, cultivation equipment, and related
supplies and educational materials to any person other than a qualified patient
or designated caregiver.
(4) A licensed producer of medical cannabis shall not sell cannabis, cannabis
plants, or cannabis seeds to any person other than a licensed medical cannabis
center or a licensed producer of cannabis-infused products. However, a licensed
producer of medical cannabis may transfer for no consideration cannabis,
cannabis plants, or cannabis seeds to any qualified patient or designated caregiver.
(5) A producer of cannabis-infused products shall not sell cannabis-infused
products for resale to any person other than a licensed medical cannabis center.
(6) A medical cannabis center, medical cannabis collective producer of medical cannabis, or producer of cannabis-infused products shall not sell to any registry identification cardholder cannabis or cannabis plants in an amount that exceeds an adequate supply.
(7) A medical cannabis collective shall only sale cannabis or cannabis infused products to collective members only. All Collective Members must maintain valid license and medical recommendation.
(g) Exemption From Criminal Laws. – A medical cannabis center, Medical Cannabis Collective, Patients with growing privileges,producer of medical cannabis, or producer of cannabis-infused products with a valid license for that function is exempt from the criminal laws of this State for possession, production, delivery, or transportation of cannabis, or aiding and abetting another in the possession, production, delivery, or transportation of cannabis, or any other criminal offense in which possession, production, delivery, or transportation of cannabis is an element if the medical cannabis center, producer of medical cannabis, or producer of cannabis-infused products is in substantial compliance with this section and any rules adopted under this section.
(h) Loss of Exemption From Criminal Laws. – A person who is not a qualified patient or
licensed caregiver but who is otherwise authorized to possess, produce, deliver, or transport
cannabis for medical use pursuant to this Article ceases to be exempt as provided in subsection
(g) of this section upon committing any of the following acts:
(1) Driving while impaired by cannabis, provided that the person shall not be
considered to be impaired solely for having cannabis metabolites in his or her
system.
(2) Delivering cannabis to any individual who the person knows is not a registry
identification cardholder or qualified patient.
(3) Manufacturing or distributing cannabis at an address not registered with the
Department.
(4) Failing to report transfer of cannabis authorized under this section to the
Department.
(i) Monthly Fees and Reporting.
(1) Each medical cannabis center, producer of medical cannabis, and producer of
cannabis-infused products licensed under this section shall submit quarterly
reports to the Department on all financial transactions, including, but not
limited to, sales and purchases of cannabis and cannabis-infused products, and
transfers of cannabis and cannabis-infused products for no consideration.
(2)(A) Each medical cannabis center licensed and operating under this section shall
pay to the Department monthly fees equal to ten percent (10%) of the medical
cannabis center’s gross revenue derived from the sale of cannabis and
cannabis-infused products.
2(B) Each medical cannabis collective will pay a standard tax rate or 1.5% on all transactions unless the transaction is a donation or gift to help sustain other patients at a low cost rate.
2(C) Each Patient Home Grow is only required to pay license fees. If the patient has left over cannabis the remaining cannabis must be donated to patients to ensure effective cost and adequate supply for all patients regardless.
(3) Each producer of medical cannabis or cannabis-infused products producer
licensed and operating under this section shall pay to the Department monthly
fees equal to ten percent (10%) of the producer’s gross revenue derived from the
sale of cannabis and cannabis-infused products.
(4) Each person who (i) holds a medical cannabis center license and either a
producer of medical cannabis license or cannabis-infused products producer
license, or both, and (ii) operates both a retail medical cannabis center and one
or more production sites shall pay to the Department monthly fees equal to
ten percent (10%) of that person’s gross revenue derived from retail sales of
cannabis and cannabis-infused products produced by that person.
(5) Nothing in this subsection shall be construed to exempt persons licensed under
this section from the reporting or remittance of sales tax for any transaction
upon which a sales tax may be levied.
(j) The Department shall use system revenues from license fees and monthly gross
revenue fees to fund, in the following order of priority:
(1) Costs associated with establishing and operating the regulated medical cannabis
supply system established under this section.
(2) The registry system established under section 5of this article.
(3) The medical cannabis research program established under section 9 of this article.
(4) Other Department programs.
(k) Disqualifications for Licensure. – The Department shall not issue a license authorized
by this section to any of the following persons:
(1) A person who has not paid the appropriate license or license renewal fee.
(2) An individual who is less than 21 years of age.
(3) A person who has served a sentence for any of the following felonies in the five
years immediately preceding the date of license application: any Class A
through E felony; any felony that includes assault as an essential element of the
offense; any felony under Article 14 (Burglary and Housebreakings) of Chapter
14 of the General Statutes; any felony under Article 16 (Larceny), Article 16A
(Organized Retail Theft), Article 17 (Robbery), Article 18 (Embezzlement),
Article 19 (False Pretenses and Cheats), Article 19A (Obtaining Property or
Services by False or Fraudulent Use of Credit Device or Other Means), Article

19B (Financial Transaction Card Crime Act), or Article 19C (Identity Theft) of
Chapter 14 of the General Statutes. In order to ensure compliance with this
subdivision, the Department shall conduct a criminal history record check of
any person whose name is submitted on an application as the director or an
employee of the medical cannabis center or as a producer or employee of a
producer.
(4) A person who at any time has been convicted of a felony violation for
manufacturing, selling, delivering, or possessing with intent to manufacture,
sell, deliver, or possess a Schedule I or II controlled substance in violation of
G.S. 90-95(b)(1). In order to ensure compliance with this subdivision, the
Department shall conduct a criminal history record check of any person whose
name is submitted on an application as the director or an employee of the
medical cannabis center or as a producer or employee of a producer.
(5) Except as otherwise provided in this subdivision, a person who has not been a
resident of North Carolina for at least two years prior to the date of the license
application. A person who submits an application for licensure pursuant to this
section within 180 days after the effective date of this Article is not subject to
this residency requirement if the person was a resident of North Carolina for at
least 180 days prior to the effective date of this Article.
(l) Inspection. – The Department may inspect the premises of any person seeking or holding licensure as a medical cannabis center or a licensed producer of medical cannabis solely to
determine compliance with this Article.
(m) License Suspension or Revocation. – The Department may suspend or revoke a license
issued pursuant to this section if the Department determines that the licensee is not in substantial compliance with this section or the rules adopted by the North Carolina Medical Care Commission under subsection (r) of this section. The Department shall notify a licensee at least 14 days in
advance of a proposed suspension or revocation, including the reasons for the suspension or
revocation and any possible remedial options available to the licensee. The Department shall not
suspend or revoke a license without conducting an investigation and providing the licensee an
opportunity for a public hearing, at which the licensee shall be afforded an opportunity to be
heard. The Department has the power to administer oaths and issue subpoenas to require the
presence of persons and the production of papers, books, and records necessary to conduct a
suspension or revocation hearing.
(n) The Department shall maintain a confidential list of the persons to whom the
Department has issued a license pursuant to subsection (b), (c), or (d) of this section. Individual
names and other identifying information on the list shall be confidential, exempt from the
provisions of Chapter 132 of the General Statutes, and not subject to disclosure, except to
authorized employees of the Department as necessary to perform official duties of the Department.
(o) The Department shall verify to law enforcement personnel whether a license is valid
solely by confirming the validity of the license number and the name of the person to whom the
Department has issued the license number.
(p) Any person, including an employee or official of the Department or another State
agency or local government, who breaches the confidentiality of information obtained pursuant to
subsection (c), (d), or (e) of this section is guilty of a Class 1 misdemeanor; however, any fine
imposed for a violation under this subsection shall not exceed one thousand dollars ($1,000).
(q) Nothing in this section shall be construed to prevent Department employees from
notifying law enforcement officers about falsified or fraudulent information submitted to the
Department by any person in support of an application for a license authorized by subsection (c),
(d), or (e) of this section.
(r) A person licensed under subsection (c), (d), or (e) of this section shall be granted the
full legal protections provided in this section as long as the person is in possession of a valid
license. If the person is not in possession of a valid license, the person shall be given a reasonable
period of time to produce the license before the initiation of any arrest, criminal charges, or other
penalties.
(s) Rules. – Not later than 120 days after the effective date of this act, the North Carolina
Medical Care Commission shall adopt rules to implement the provisions of this section. The rules
shall do all of the following:
(1) Establish requirements for the issuance of registry identification cards to
qualified patients and designated caregivers, which shall include at least all of
the following:
a. Written certification, as defined in section 1 of this article.
b. An application or renewal fee.
c. The name, address, and date of birth of the qualified patient, except that
if a qualified patient is homeless, no address is required.
d. The name, address, and telephone number of the qualified patient’s
Medical care provider.
e. The name, address, and date of birth of each of the qualified qualified patient’s
designated caregivers, if any.
(2) Establish qualifications and requirements for licensure of medical cannabis
centers, producers of medical cannabis, and producers of cannabis-infused
products.
(3) Establish civil penalties for minor violations of the provisions of this section.
(t) Article 4 of Chapter 150B of the General Statutes governs judicial review of an
administrative decision made under this section.