A state-appointed advisory panel is urging North Carolina legislators to move toward legalizing cannabis under a controlled system that would permit adult sales. The group argues that regulation would improve public safety and generate significant revenue for the state.
While cannabis remains prohibited under federal law, most states have adopted some form of legalization. North Carolina stands among a shrinking number of states that have not approved either recreational or medical cannabis programs.
According to the newly released advisory council report, residents are already spending billions of dollars on illicit marijuana. At the same time, a growing market of loosely regulated cannabis-derived products continues to expand, often operating outside meaningful oversight.
The report highlights that intoxicating cannabis-related products are widely accessible across the state. It frames the situation as a policy decision: continue allowing an unregulated market to operate or establish clear rules designed to safeguard public health and safety.
The advisory group was assembled by Governor Josh Stein and includes representatives from law enforcement, public health, agriculture, and both major political parties. Members believe a licensed retail system would bring structure to an industry that currently operates with minimal control, improving safety standards and enforcement. A more detailed set of recommendations is expected later in the year.
While cannabis is illegal in North Carolina, hemp is permitted because it contains only trace amounts of THC. However, some producers have developed methods to extract and concentrate THC from hemp, creating products that can produce a high.
These products are often marketed as legal because they contain CBD, but regulators warn they may still have potent effects. Unlike prescription drugs or alcohol, many of these products lack uniform requirements for testing, labeling, or age restrictions. They are frequently sold in vape shops and convenience stores, sometimes even to underage customers.
The council argues that stricter rules, including limiting sales to adults, would help reduce access among minors while ensuring better product quality and transparency. It also recommends aligning regulations for cannabis and hemp-derived substances to eliminate confusion around enforcement.
While medical marijuana remains part of the conversation, the panel cautions against building a system limited only to patients. Such a model, they say, would be costly to establish and maintain, requiring new infrastructure, training, and oversight. There is also concern that restricting access could sustain illegal sales rather than reduce them.
Governor Stein has previously described the current situation as chaotic, noting the lack of consistency in how cannabis-related products are handled. He supports allowing adult use for those over 21 and has suggested creating a regulatory body similar to the state’s alcohol control system.
Despite multiple proposals in recent years, none have cleared both chambers of the legislature. Any significant change would require approval from a GOP-led General Assembly, where opinions remain divided.
Stein hopes the council’s report will prompt action in the upcoming legislative session, emphasizing the need for a system that prioritizes safety while addressing an already active market.
The wider marijuana industry, including firms like Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY), will be monitoring how drug reform discussions in North Carolina progress and what consensus is reached on the subject of legalizing cannabis sales.
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